After analysing the newest mortgage changes announced by Jim Flaherty, it is pretty difficult to find fault with the government's decision to tighten up on residential mortgage borrowing. Believe me, I tried my best to poke holes in last weeks announcements.
The government has taken major steps to cool down the Canadian Real estate market as soon as possible. Flaherty has taken four steps:
The government has taken major steps to cool down the Canadian Real estate market as soon as possible. Flaherty has taken four steps:
- Reducing the amortization period for mortgages to 25 years from 30 years
- Lowering the amount that Canadians can borrow against their homes to 80 per cent from 85 per cent
- Constraining maximum gross debt service ratios to 39 per cent and maximum total debt service ratios to 44 per cent
- Limiting government-backed mortgage insurance to houses under the $1 million threshold. Read More
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