Mortgage changes get mixed reaction
Posted Jun 21, 2012 10:46 am.
This article is more than 5 years old.
The federal government tightening mortgage rules to make it harder for people to buy or borrow on their homes is getting mixed reaction.
Economist Dr. Frank Atkins at the University of Calgary says it’s not right that Ottawa is limiting the choice of financial vehicles people can use to buy a home.
He says it makes no sense that Ottawa’s monetary policy is the reason why interest rates are so low yet the Harper Tories don’t want people to use those low rates to their advantage when financing a home.
CREB says the changes mean some people won’t be able to afford a home, dropping demand and prices, but for the most part, Calgary won’t feel any negative impacts.
The Canadian Real Estate Association thinks the changes are a measured response to the government concerns over household debt levels in our country.
The association says they’ll be watching how the changes affect the market — especially the re-sale market — to ensure the changes have the desired effect.
Adding, further tinkering with the market by government should be looked at very carefully.
