Didn't find this topic anywhere, and this could have gone in the "Calgary Real Estate" thread, but i thought it warrants its own discussion.
Quote:
|
Flaherty announced that he was moving the maximum amortization period to 30 years from 35 years and lowering the refinancing limit to 85% of a home's value from 90%. As well, he said the government was withdrawing insurance on home equity lines of credit.
|
From :
http://online.wsj.com/article/BT-CO-...17-706559.html
Probably a good move, but the government went 0 down and 40 year amort so the average canadian could afford a house, but all it did was push up prices. Now as they tighten, anyone who entered the market in 06/07/08/09 due to the new rules is going to suffer as home prices drop as it makes it tougher for new/young buyers to qualify. I see homes in the 200-400k suffering in price as a direct result. All the people who could earlier qualify for say 300k houses can now only buy 270k houses.