By Warren McNeil

Take a look at the recent Globe and Mail article entitled, Ottawa tightens mortgage rules to avoid ‘bubble’

It may come to no surprise to you that this has happened. This is measure that the government is putting into place to prevent a similar situation to the US housing crisis. Originally the intent was to help people who might not be able to afford 5% downpayment or lower monthly payment due to longer amoritization. They kaybashed this because it could lead to our very own little crisis here. I am glad they are taking this step. It is a protection that is necessary for us right now because of the economy. With the higher prices of gas people are already extended as far as they can go. Now if only we could do something about these high gas prices and high interest credit cards. I think the one side-effect to this new change is that our balanced market is going to be even more balanced. People who don’t have 5% to put down on a house will just have to wait a little longer.

People can still get 0% down and 40 year mortgages till Oct 15th. You might want to get into a lender soon to secure your finances if you plan on buying a house this year.

Thanks for reading!