VANCOUVER (NEWS1130) – Ottawa is considering measures could make it more difficult for consumers to take on a mortgage and buy a home. The move is expected to prevent consumers from going too far into the red.
Federal finance minister, Jim Flaherty says the likely measures would reduce the amortization period and boost the minimum down payment for potential home buyers.
News1130 Business Editor Russ Byth tells us what he’s heard from the mortgage experts, “People getting into a mortgage now should plan for a two percent, at least, rate increase, about a year or so down the road. They won’t be going up before that, but look down the road and plan for that.”
Last week, the central bank warned that when interest rates rise to normal levels, up to 10 per cent of households could face difficulties in meeting monthly payment requirements.