All indicators are that Jim Flaherty will once again tighten mortgage rules. If you are going to buy a home this year, think getting off the fence.
Three key points of change could be:
7% Minimum down payments
Amortizations cut to 25 years from 30
Higher qualifying standards
Each of these changes would be implemented to slow the housing market this Spring.
Sadly the biggest problem right now is consumer debt, credit cards, loans and unsecured lines of credit but our government continues to hit the one area of our economy that has remained strong since the onslaught of this latest Recession.
Big banks carry a lot of clout and even though they are responsible for handing out credit like candy at a birthday party, they are not suffering any tightening of their practices.
Credit card rates did not drop when mortgage rates fell through the floor. Loans and lines of credit rates have increased of late. It seems profit is at the forefront, not concern about the effects on the economy.
But that’s just my opinion.
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