Canada’s “Bold” Mortgage Changes Update: Good for ALL Canadians?

#canadianrealestate #bankofcanada #canadianeconomy

The Canadian Government has released the technical details on what it calls the “…boldest mortgage reforms in decades” while the Mortgage Industry thanks Ottawa for measures that it calls good “…for all Canadians.”

Links:

Government announces boldest mortgage reforms in decades to unlock homeownership for more Canadians:

Federal government releases technical details of its latest mortgage changes:

Mortgage professionals meeting on Parliament Hill:

Mortgage and real estate industry hit the jackpot with this trio of announcements:

Canada's new mortgage rules could make it easier to buy a home — Here's what you need to know:

Mortgage loan insurance and premiums:

Market Watch Archive:

Can the characteristics of new mortgages predict borrowers’ financial stress? Insights from the 2014 oil price decline:

Financial System Review—2023:

Real Estate, Mortgage Markets, and Monetary Policy:

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Best Practices for Negotiating Car Loan Terms and Conditions in Canada:

Policy interest rate:

The impact of macroprudential housing finance tools in Canada:

Toughest time ever to afford a home as soaring interest costs keep raising the bar:

Bank of Canada rate cut now ‘a near certainty’:

Residential Mortgage Industry Report:

Credit Conditions and Consumption, House Prices and Debt: What Makes Canada Different?:

Canada’s unemployment rate rises to 6.6% in challenging market for job seekers:

Indicators of financial vulnerabilities:

Mark Mitchell – Mortgage Broker London Ontario
920 Commissioners road east
London, Ontario N5Z 3J1
Phone: [phone] (Call or Text)
Brokerage Lic: 10464
Broker Lic: M16001479

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Commentary on this Channel should not be considered financial advice.

[rickyb]

Someone visits the doctor with a blood pressure of 170/100. The guidelines say it should be 120/80. Instead of prescribing the needed medicine the guideline for acceptable blood pressure is raised to 180/100. The patient is now in compliance but the bad news is the heart attack or stroke is still coming.

[Kevriyal]

Allowing people to take out a $1.4M mortgage backed by the taxpayers is reckless and irresponsible l.

[zomgoose]

Anything, except building a real economy. Politicians are so lazy.

[bipolarpunt]

Increasing Amortization term put the lender at risk, if there is a serious recesstion and a sharp decline in housing prices. People could walk away from their home, leaving the banks with big losses. In 2008, Canadian banks received 114 billion in bailouts. Who pays for these Bailouts? you guessed it, YOU!!! through taxes and inflation.

[clydedufffyaway]

Thanks for clicking!

Making payments lower doesn’t make anything more affordable.

They’ve been unsuccessfully putting patches on housing affordability for decades. The standard of living of Canadians has been dropping right along side of housing affordability.

Now I can’t afford food or retirement. What are the patches?

How about we focus on incomes? No my government is more concerned with putting me tens of thousands of dollars in debt to house and feed illegal immigrants for a few years.

[Joe-mzdc]

For those of you struggling with all of this, there are some great Coleman tents on sale at Canadian Tire as I write this.

[sale]

I just feel bad for our kids and whoever will stay here work their life away and pay for this due to mistake after mistake from this goverment.... Thinking about it, its not even mistake its designed this way, as greed knows no limits

[lawrencehalpin]

Thank you Mr. Mitchell. You are one of the top two real estate reporters in Canada. God bless you and your family for what you do.

[RichardPaton-klee]

this is laughable this is what got people into trouble in the first place now the answer is just more of the same

[TJames]

A responsible government wouldn’t purposely force Canadian’s into insurmountable debt. Tells you who they serve and it ain’t you and I.

[rossmcd]

I remember when Jim Flaherty, Harper Govt Finance Minister, made these rules:
To qualify for a mortgage loan Canadians can spend a maximum of 39% of their gross household income on home expenses such as mortgage, property taxes and heating, and a maximum 44 per cent of income on housing expenses and all other debt.
And the he lowered the amortization rate to 25 years. He did this to, well, protect homebuyers from themselves, and Canadians from backing high risk loans. Seems our finance minister wants to do the opposite. Not good. Not good at all.

[Prairieshutterbug]

There is no interest at all three levels of government in Canada to fix the problems with residential real estate.

[Dodoite]

I regret going under 20% I didn't understand interest. I couldn't imagine going 5% for a $1.5 mil house

[jvalenti]

"Boldest reforms in decades". Hmm.
One thing for sure: this video is packed with great information and insights. Thank you!

[timw-ON]

Incentives should only be for building new homes. Incentives there will lead to increasing housing stock. Resale properties don't need any incentives. They already exist, and aren't going anywhere.

[pilotgirl]

What could go wrong? Prices always go up, so LTV of 95% is nothing to worry about ! Thanks Mark.

[JanGoh-jbge]

Okay, so what if we eliminated mortgage insurance? And then at the same time, allowed anyone that's bought a house that cost less than $1 million in the last 10-15 years write their capital loss from decreased home value off until they're finished paying off the mortgage? Insulating banks from risk has such bad downstream effects, but you can't cut them off without doing something to protect the buyers that will start losing value because of (likely) lower home prices. None of the political parties seem to have any plans other than give the banks whatever they want and pretend that unsustainable home values are good for the economy.

[dtownssqwe]

What would the family income need to be to qualify for a 1.34M 30yr mortgage? Not sure that many first time home buyers would have that income?

[dinagallis]

Thanks Mark, for them to come out with something like this means … they saw the iceberg ahead and had to do something this drastic in hopes of avoiding it. Realistically how many people will qualify and be brave enough to sign off on these terms not knowing what the future brings? .. if this isn’t gambling BIG I don’t know what is?

[ontariorob]

Hey Mark, what is a good book recommendation? I see your book collection but can't read any titles.