Mortgage controls hurt young buyers: expert
The latest move to rein in mortgage access will hammer young homebuyers and likely lead to a drop in home sales, an Ottawa mortgage expert warns.
The recent tightening of lending regulations from Finance Minister Jim Flaherty is leaving many young Canadians concerned about their chances of entering the market with today's record-low mortgage rates.
This blogpost references an article from the Ottawa Citizen, in which Frank Napolitano of Mortgage Brokers City raises concerns about the tightening guidelines and the effects on all Canadians, specifically those just starting out in the mortgage market.
Of the four changes announced June 21st, it is believed decreasing the maximum amortization period from 30 years to 25 on high-ratio mortgages (mortgages with less than a 20% down payment) will have the most profound effect, making many potential borrowers, specifically young Canadians, put their dreams of home ownership on the back burner.