Monday, January 17, 2011

Better late than never...

The announcement from Flaherty on home mortgages:

  • Mortgage amortization periods will be reduced from 35 years to 30 years.
  • The maximum amount Canadians can borrow to refinance their mortgages will be lowered from 90 per cent to 85 per cent of the value of their homes.
  • The government will withdraw its insurance backing on lines of credit secured on homes, such as home equity lines of credit

You have to wonder why in God's name the government (ie us suckers) even got into insuring HELOCs (number 3)

These will not take effect until March 18th so bank loan officers can squeeze a few more people over the line.

BTW the last changes in lowered max amortization from 40 to 35 and max refinance to 90 from 95%. It really didn't have much of an effect on housing prices, so I don't have much hope for this either. Now shuttering the CMHC or taxing 'empty homes' would have a bigger effect, but I wont hold out hope for that.

Anyway it is a start- but of course it is always better NOT to start a fire than to try and put it out. Remember that for next time Mr F.