Reigning in the Mortgage Industry
I’m pleased to see the federal government are taking action to modestly reign in the wilder excesses of the Canadian mortgage lending industry. They propose to insure only loans with a 5% downpayment and 35 year or less amortization period – compared to tnhe status quo which permits insurance of no down payment 40 year loans. My recollection is that the Bank of Canada pushed for this a couple of years ago, but were rebuffed. The tone of this statement is pretty complacent – no sub prime mess here! – which may yet prove to be wishful thinking.