Flaherty says no mortgage rule changes, yet

Flaherty says no mortgage rule changes, yet

The federal government has no plans to tighten mortgage rules again, said Finance Minister Jim Flaherty, cooling the speculation surrounding his meeting with the country’s leading economists yesterday.
 
But if the market changes, he is not against the idea. “Our concern is always ensuring that the housing market does not overheat, and in particular that the mortgage market does not overheat,” said Flaherty on Monday October 4.
 
In recent weeks, economists have raised concerns about a housing bubble getting ready to burst, and about how much debt Canadian households are carrying. The average Canadian household shoulders a debt equal to 146 per cent of their income.
 
Flaherty added the government wants to ensure it limits the speculative real estate market.
5 Comments
  • AB Mortgage Broker 2010-10-06 8:02:40 AM
    Jim, some people you just can't help. I've always said, you can't fix stupid! That said, I think your efforts would be better served trying to reform the loose credit card policies. Credit Cards are way to easy to obtain and bankruptcy is way too easy to claim!!
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  • DanP 2010-10-06 11:20:03 PM
    The Finance Minister and his Economist entourage need to take a reality pill. The mortgage industry, and credit industry as a whole, already has checks/balances in place to control financial capicity, it's called a Debt Service Ratio. Most credit/mortgage borrowers go through that pre-qualifying calculation and cannot buy/refinance if does not meet TDS benchmarks. If the Minister really wanted to help the consumer, he might be better served by addressing weak job market issues (more "full time" rather than more partime), better annual increases, etc... The problem is not simply one of the debt, it's the stability/reduction of household income. Many consumers are now living off their Cards (to make ends meet)that, at one time, they qualified for. Like Hmmm's comments, maybe the Minister should mandate credit card rates to be cut in half?? Wonder how banks and C.C.companies would react to that "consumer assists policy" ??
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  • Chris Genova 2010-10-06 11:57:42 PM
    I worked for one of the big banks and their whole attitude (at the branch) was give the clients as much credit as they can (MAX MAX MAX) gotta hit them targets, Boss needs a trip, don't care if they go Bankrupt not the branches issue just jam that credit down their throats, If we don't the next bank will so we might as well have the volumes!
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