This morning the Finance Minister announced New Mortage Rules:
- Mortgage amortization periods will be reduced from 35 years to 30 years.
- The maximum amount Canadians can borrow to refinance their mortgages will be lowered from 90 per cent to 85 per cent of the value of their homes.
- The government will withdraw its insurance backing on lines of credit secured on homes, such as home equity lines of credit.
These new rules is an act by the government to protect the consumers from avoiding similar debts inherted by people in the US. Some will argue that this is not good for business and some will argue that it is a good thing. In all honesty not everyone is eligible to buying property and its better to be house poor and cash rich!