Mortgage Rates by Michael Friedman

02 Jun Ottawa is looking at changes to mortgage rules, AGAIN!

You may be starting to hear reports that Ottawa is getting pressure from the major banks to change mortgage rules once again.

The rumblings we are hearing is that these changes will be directed towards first time home buyers by way of raising the minimum down payment to 10%.

It is my opinion that the banks have a self-interest in requesting and suggesting Ottawa does this which I believe is linked to the additional exposure they are now required to take with their mortgage portfolios.

The major underlying issue in both Toronto and Vancouver is a supply issue and in turn, this is driving up prices. However, I do stand by my previous blog/Facebook comments that the spark that has ignited and continues to fuel the fire, is offshore buyers.

If we are to start now limiting the ability of first-time home buyers into the market while allowing foreign money to absorb more real estate, we are going to have more issues than the price of housing moving higher.

I encourage you to be a vocal voice and contact your local MP (http://www.parl.gc.ca/Parliamentarians/en/members), let’s help people who want to live and work in our community be homeowners, not punish them.

Michael

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