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New Mortgage rules start today… but BMO study says Canadians pay their mortgages in 15 yrs!

  The govt’s new mortgage rules go into effect today… well, actually, most Lenders put them into effect a week ago to ensure they had enough time to process applications already in the pipeline.

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….

Steve Garganis View All

As an industry insider, Steve will share info that the BANKS don't want you to know. Steve has appeared on TV's Global Morning News, CBC's "Our Toronto" and The Real Life TV show. He's also been quoted in several newspapers such as the Globe and Mail, The Toronto Star, The Vancouver Sun, The Star Phoenix, etc.

2 thoughts on “New Mortgage rules start today… but BMO study says Canadians pay their mortgages in 15 yrs! Leave a comment

  1. So I got an email from our mortgage lender asking us to go over our variable rate “I was looking at your borrowing etc…..and feel we should meet soon to talk about your mortgage, especially as you have a variable rate term.” “. I just want to make sure you are comfortable with any possible rate change that may start to happen in the fall (Sept)” Thoughts?

    • Hi Eva,

      Sorry for the delay in responding.. your post was flagged as spam… I don’t understand your Lender’s comments…. is something supposed to happen with rates in September? There are no indication of rates going up anytime soon… And if you are in a Variable rate mortgage, then you might be better off just sticking with Variable rate… it will depend on what your rate is and what your personal circumstances are….

      You are welcome to contact me to discuss further…. steve@mortgagenow.ca Steve

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