The prevailing impression was that it would stop reckless borrowing by Canadians who were putting themselves, and the country, at risk with highly leveraged borrowing.
It is interesting to note that Flaherty said, “the measures will not affect the ability of a Canadian family to buy a house. It will affect those who are speculating. What we’re getting at is the speculation in multiple condominium units in particular which we see in Vancouver, Montreal, Toronto and in some other places in Canada.”
It's an important distinction. Because the average joe seems to think that you can't simply buy a home with no money anymore... a move that strengthens our nation's housing market.
The fact is that nothing is further from the truth.
You can still buy a home with nothing down in this country, as this mortgage broker in Abbotsford clearly tells you on their website.
- $0 Down Mortgages on Owner Occupied Properties: Are you tired of paying someone else’s mortgage? You don’t want to deal with landlords any more however, you have no money to buy a place of your own. We have the solution for you in the form of a $0 down mortgage. This means that almost anyone can own their own home. We have lenders who will finance 95% of the purchase price and give you 5% cash back for your down payment so you can own your own home. Also, you have the option to have your 5% down payment gifted from family or borrowed in the form of a loan.
As the current market 'slowdown' catches steam, look for R/E media propoganda go into overdrive as it targets and entices those sitting on the sidelines to get into the market under this arrangement.
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