"In an announcement released today, the government said government-backed mortgages would require a minimum down payment of five per cent and a maximum amortization period of 35 years. The borrower would have to have a consistent minimum credit score and there would be new loan documentation standards."
Click her to read The Vancouver Sun report.
Rumour on the move by the Government of Canada to end the 40-year mortgage was posted here earleir on June 14/2008. An article by The Star "
Ending the 40-year program and disallowing $0 down payment is a prudent decision from the government.
James Wong Richmond BC Realtor > Richmond Remax Realtor> Richmond homes for sale, Richmond BC townhouses, Richmond BC condos > Vancouver mortgage broker > Richmond mortgage broker.
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Mr James Wongs' comment that "ending the 40 year program and disallowing $0 down payment is a prudent decision from the government" is typical arrogance of those from the baby boomer generation. Those who, by nothing more than the luck of being born at that time, were able to enter the market. Even if one flipped burgers for a living, a person of working age could afford the $25,000 homes that were readily available in the 60s and 70s. It is due to the rampant speculation, greed and corruption of those from THAT generation that has led to the current overpriced market we see in the lower mainland today. For many young people today, the forty year mortgage was the the ONLY way that they were able to even consider entering the market. Sure, it would mean that they would end up paying significantly more in the end, thus further lining the pockets of the big banks. However, the alternative of renting for the rest of ones life is an even more dismal proposition. The narcissistic baby boomer generation has done more to reduce the quality of life in this country and around the world than any other generation previous. What they have done to the real estate market is just the tip of the iceburg.
Anyone concerns with high and unaffordable housing prices should examine the many reasons why we have such a problem. Lack of land parcels, government policies, building codes, labour problem, too much speculation... In Greater Vancouver, house prices are out of reach by the average home buyers. We have the highest home prices in Canada as can be seen here on the pricing charts by Brian Ripley. Home buyers are better served with more affordability housing than financial manipulation.