The government is going to make it more difficult for strapped Canadians to buy a home. The Canadian Press is reporting that Finance Minister Jim Flaherty is changing refinancing rules and cutting the maximum term of mortgages to 25 years from the current 30.
“Our Government stands behind the efforts of hard-working Canadian families to save by investing in their homes and their future,” Flaherty said in a statement Thursday morning. “The adjustments we are making today will help them realize their goals, build on the previous measures we have introduced to keep the housing market strong, and help to ensure households do not become overextended.”
As CP reports, it’s the fourth time the federal government has changed mortgage rules since 2008.
Bank of Canada Governor Mark Carney has devoted much of his public speaking time to warning Canadians about rising household debt.
“It contributes to a broader issue where some Canadian households are becoming overstretched,” Carney has been quoted once or a few dozen times. “Canadian households as a whole are being overstretched, which creates risk for the economy.”