Many mortgage industry professionals feel the government's new tougher mortgage rules are weak attempts in dealing with consumer debt.
With the average canadian debt to income ratio at 148.1%, many feel that more agressive efforts should target personal debt accrued by high interest credit cards, personal loans and lines of credit.
Many feel the tougher mortgage rules will have little impact on the real estate market; only a few borrowers will face a reduction in what they qualify for as $100 a month for a $300,000 mortgage is not a significant amount.
Others feel the tougher mortgage rules are a step in the right direction; Canadians need to learn sooner about budgeting and debt, and managing their debt loads.
Bottom line is the government made those changes to slow down the housing market as they are worried about consumer debt - it probably also signals that they do not forecast an increase in interest rates in the next 12 to 18 months - and something had to be done.
Sales Representative, Accredited Buyer's Rep.
Century21 In Town