I was wrong when I said I didn't think the new mortgage changes this past July would have much of an impact on the overall Vancouver market. I should have realized the domino effect it would create.
When you cut off the 1st time buyer existing home owners who want to move up the property ladder by selling their place and buying a bigger home - they can't do it.
Here's my rant! I'm all for Canadians reducing some of their debt, I've blogged about it many times but why on earth is our finance minister going after good debt like mortgages before he goes after all the bad debt that's out there like credit cards?
Does he not realize that for the vast majority of Canadians in their 60's, 70's and 80's their principal residence is the largest and sometimes the only asset they own. Most will tell you that looking back at buying their first home was the best financial decision they ever made.
It's like a forced savings account. Maybe Ottawa should get their own financial house in order before they start telling Canadians they can't buy that first home. You might also want to look into the credit card industry and some of their practices.
If it so happens the mortgage rule changes (which don't even return us to what those very rules were 15 years ago) are driving housing prices down to what the vast majority of Canadians in their 60s,70s and 80s originally paid for their homes, then getting on the property ladder wouldn't be an issue now, would they?
In fact, aren't today's regulations (and interest rates) even more lax than what they were for those Canadians in their 60's, 70's and 80's when they first bought? Perhaps we should return to the mortgage rules that were in place then in order to bring the market back into balance?
Just a thought.
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