There’s growing pressure on the federal government to make it easier for Canadians to qualify for mortgages. Longer amortizations, lower down payments, a weaker mortgage stress test, and even government assistance with down payments are all being discussed. But are these actually good ideas?
In this episode of The Last Honest Realtor, David Fleming breaks down five potential changes to Canada’s mortgage and lending rules, explaining the benefits, the risks, and the unintended consequences that could follow. From the lessons of the 2008 financial crisis and Canada’s famously conservative banking system, this is a discussion about where we draw the line between helping more people buy homes and protecting borrowers from taking on more debt than they can handle.
In This Episode:
- 00:00 – Intro
- 01:10 – Can public policy actually make housing more affordable?
- 08:28 – Three proposed changes to mortgage rules
- 12:44 – What longer amortizations actually save buyers
- 19:22 – How Canada’s down payment rules evolved
- 21:07 – Should buyers be able to purchase without enough savings?
- 24:14 – The borrowers who were protected by the stress test
- 27:56 – Did government policy make housing more expensive?
- 34:22 – The First-Time Home Buyer Incentive: What went wrong?
- 39:22 – Who actually benefits from getting more people into mortgages?
Should Canada loosen mortgage rules to help more people buy homes, or are the existing safeguards there for a reason? Join the conversation and let us know in the comments section.
