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Mortgage Broker News | 21 Nov 2016, 08:15 AM Agree 0
The head of Canada's federal housing agency says regulators should explore the possibility of raising the minimum down payment required on a home as a way of easing affordability and reducing risk to the financial system
  • Ron Butler | 21 Nov 2016, 10:24 AM Agree 0
    This is a very interesting comment: " they don't mention that the Canadian system has not been stressed since the Great Depression" The interesting part that this the crux of the argument. 75 years have gone by with the system functioning very well through a number of severe economic stresses from massive inflation that lead to 21% interest rates, right through to the World Financial Crisis in 2008.

    Mr. Siddall has to reach back 85 years to grasp at the straw of an epochal financial meltdown in 1929 to justify his argument.

    Incredibly, his agency just issued a report that detailed stress tests based on massive financial disasters that showed his Crown Corporation would more then just survive but in almost all cases only suffer severely reduced profit.

    How is Risk Sharing not a "solution looking for a problem" if his own stress tests show no danger and only a return to the Great Depression can validate his argument?
  • SB | 21 Nov 2016, 01:51 PM Agree 0
    Give your head a shake. Requiring a minimum down payment of 10% delays home ownership by several more years for first time buyers. (Who can save $30k for a nominal $300k purchase on a $70k salary??) Seems to me the new rules requiring qualification at 4.64% today have already effectively cut out a large portion of the population. Stop the madness and let the markets decide.
  • Charmaine | 22 Nov 2016, 07:18 AM Agree 0
    Well said, why does this government want to deny this generation the ability to be home owners. They increased first time home owners rebate, you first got to qualify for the mortgage! Thanks for creating a booming rental market, as the saying goes, the rich get richer! How are the kids suppose to save for their downpayment with these rents which are out of control, not all kids have rich parents! Look at credit card debt do something about this, this is the root of the problem which causes most of the refinances!
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