The new rules are supposed to help us pay our mortgage off faster, make it tougher to borrow money and slow the housing market which in turn will save us from a housing bubble. And this is also supposed to help lower our personal debt levels. It all sounds great, but the govt has not provided us with any real data to suggest that we need saving from ourselves.
In fact, a new BMO study shows that Canadians are paying off their mortgages in 15 years or less. Does that sound like a bunch of irresponsible borrowers? And there is a lot more data out there that shows over 20% of us are making lump sum payments… and even more are accelerating their payment schedules by increasing their minimum mortgage payments..
If the govt did make a mistake and used a sledgehammer to kill a fly, then let’s hope they will act just as quickly to adjust the rules if their policies were too strong… Let’s hope they will put some sort of review procedure in place to measure the impact of these changes….We already have some pretty tough standards when it comes to borrowing for a house…. maybe we should bring in some rules for Credit Cards or personal loans… seems like anyone with a pulse can get one of these….