You’ve probably heard by now, that mortgage lending has been tightened in Canada. The new rules are intended to cool the housing market, and limit the amount of personal debt in Canada.
The Globe and Mail reported the changes, last week:
“Department of Finance prepared to clamp down on mortgages by reducing the maximum amortization for a government-insured mortgage to 25 years from 30.
Ottawa will also limit the amount of equity that can be borrowed against a home to 80 per cent of the property’s value, down from 85 per cent.” – Globe and Mail
We asked our Twitter followers, their thoughts on the new rules, and got some really great insight:
“We should not give cash back down payment it should be a minimum of 10% no gift strictly from own resources.” – @carlysylvie
“Did you know that the new mortgage rules from 30 to 25 yrs is an additional payment of about $175/mo on a $275,000 mortgage?” – @tricohomes
“It’s better over all for all Canadians of all demographics.” – @parfaittweets
“Short term panic. Consumers will easily adjust. We’ve been spoiled for the past 6 years, and we still have record low % rates.” – @Sean_In_Calgary
