I heard something a little alarming on the radio this morning; the International Monetary Fund has released a warning that Canadian’s may be taking on too much debt. They warn that “a combination of households strapped by debt and falling home prices have the potential to damage the domestic Canadian economy by curtailing spending”. The IMF then further suggests that Jim Flaherty, the federal Minister of Finance, should look at further tightening the mortgage eligibility rules on CMHC insured mortgages. Woah. What??? Tightening the rules further? We’ve already had three changes to mortgage rules in the last couple of years thank you very much! I don’t think we need any more.
Now, before you really start to freak out about this, the article goes on to state that after the report’s release Jim Flaherty stopped to talk to reporters and stated that “it would take ‘clear evidence of a bubble’ in Canada’s housing- which he said outside of Vancouver’s hot market, doesn’t exist- for him to tighten rules further”.
CIBC’s Benjamin Tal also echoed Jim Flaherty’s statement and “called the IMF recommendation premature at best and at worst potentially damaging to an already fragile economy”.
Thank goodness the powers-at-be seem to be reacting sensibly to the IMF’s recommendations! If I get wind that there are any upcoming changes to mortgage qualifications I will let you all know!
Have a very Happy Thanksgiving everyone! I hope you have time this weekend so spend some quality time with your loved ones and to reflect on how truly blessed we are to live in such a great part of the world.