The Finance Department is expected to announce that Ottawa will stop backing mortgages with amortization periods longer than 30 years, cutting off support for the 35-year mortgage.
This is the effect that 40,35 and 30 year has had on the market.
I would expect the home ownwership ratio to go down over the coming years
In addition to cutting mortgage terms, Ottawa is also expected to take action to reduce the rapid rise in home equity lines of credit, or HELOCs. The government will do this by clamping down on the insurance that Canada Mortgage and Housing Corporation offers to the lines of credit.
In addition to cutting mortgage terms, Ottawa is also expected to take action to reduce the rapid rise in home equity lines of credit, or HELOCs. The government will do this by clamping down on the insurance that Canada Mortgage and Housing Corporation offers to the lines of credit.
The government is also planning a third measure that will reduce how much Canadians can draw on their home equity. Last February the Finance Department announced that it would lower the maximum amount Canadians could withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes. It is now expected to reduce that maximum to 85 per cent from 90 per cent.
This is the third time since October 2008 that the Government has tightened mortgage rules.
Always surprising to me how the larger "we" build up and destroy our pricing constructs; I guess it's an unmistakable part of human nature to be victims of natural rythms and revolutions...
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