Federal finance minister Jim Flaherty state that he does not believe Canada is going through any kind of housing bubble.The small changes to the mortgage rules are meant to avoid a crash in the housing market later.
The minister said he wants to be sure that Canadian Homeowners aren't taking on more debt than they could handle when interest rates go up (possibly this summer).
Satisfied with the changes, the Canadian Real Estate Association has added that "the Canadian resale housing market is healthy, and does not require regulatory changes beyond those announced" by the finance minister.
The majority of financial and real estate professionals are going on record supporting the federal government's mortgage rule changes.Most would agree that the changes:
- Don't prevent people from buying homes
- Won't drive a lot of new home buyers out of the market
- Don't lead to higher payments
TomorrowI will discuss how the changes could effect you.