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Put the blame on mortgage rules

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Mortgage Broker News | 24 Sep 2012, 06:00 AM Agree 0
A new report is placing the blame for a slowing real estate market squarely on the shoulders of the federal government and its move to tighter mortgage rules in July.
  • Jim A - Toronto and Durham Broker | 25 Sep 2012, 03:30 AM Agree 0
    I have stated that the true way to help the canadian consumer is to attack the high interest loan companies, the high interest finance companies, and most importantly the very high credit card companies. These are the issues to high debt in Canada. Now instead of helping people get into the real estate market the government has done something that ensures the real estate ownership is much furthur then sooner. This was and still is a bad move against the consumer.
  • Paolo Di Petta | | 25 Sep 2012, 05:41 AM Agree 0
    While the new mortgage rules HAVE contributed to the downturn, what was the alternative? Continuing to allow people to pile on debt with minimal-down mortgages because "rates are low and debt is cheap"? Letting the real estate market affordability continue to erode? Allowing the problem to continue to get worse than it already is?

    The more the bubble inflates, the bigger the pop will be. I'd argue that these measures should have been taken even earlier. Rather than letting the problem build up to something so massive, it would have been easier to tackle with smaller periodic corrections. It certainly would have hurt a lot less before than it did now.

    Perhaps then the Real Estate market wouldn't be so inflated. Even the first-time home buyers that are having such trouble coming up with a down payment could have had that same down payment go a longer way. This problem wouldn't have existed if we wouldn't have allowed the market to get out of control.
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