"Low interest rates play a big part in making more expensive houses affordable. The Bank of Canada, which supports low interest rates by keeping its prime rate low, doesn’t want us to take advantage of them. It could solve the problem by raising rates, but that would be bad for the economy. Instead, the government is using regulation to depress people’s ability to buy a house.
The government believes it needs to save us from ourselves. Left to our own devices, we will bury ourselves in debt that will take generations to pay off. If only we could be as financially responsible and debt-free as government itself."
"Why do we need government to intervene in the housing market?"
Of course the average Canadian won't qualify for this. They NEED government interference to provide government guarantees to get that loan at all.
In 2012 it sits at $600 Billion and CMHC is about to breach that ceiling.
By themselves, a huge number of Canadians never would have qualified for all those mortgages to begin with.
"Looser mortgage rules do increase the risk that some people will get overextended and lose their homes. That’s unfortunate, but people make bad financial decisions all the time. Does that mean everyone else should face government controls on their investments?
Buying less house than you can afford and keeping your debt under control are prudent choices, but they should be our choices. It’s our money and our risk.
It's comical to watch Denley criticize Flaherty for the changes he made.
Now on Twitter @village_whisper
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