Federal Government Raises CMHC Insured Mortgage Cap To $1.5M, Expands 30-Year Amortizations 

Encouraging more household debt to boost the economy without focusing on improving productivity! Does not sound good.

As soon as I heard this, my first thought is that this will push up prices, and increase debt. Not a good move for sure !

No sales ..... less money on budget from sales taxes. They're desperate for money.

People can't afford down payments for a 200-300,000$ house thank goodness we can get a lower down payment on a 1.5 million dollar house 🙄

To the moon baby.... Billion dollar condos by 2100 .

You are absolutely correct. I'm a financial analyst and a realtor but this is crazy. Our children are going to be in debts forever. Can you imagine how the government is acting and destroy people life in the long run. Thanks for the message. Sothi

Allows Canadians to get in more debt. Dangerous.

“Responsible Gambling Council” popped up in my mind after hearing this

This is how to make the homeowner and home buyer happy . The price doesn't go down and home owners can enter the market

Keep in mind not only 30 year amortizations end up paying more interest over time- they often have even higher mortgage term rates upfront e.g. 25 year uninsured mortgage rates now often are at 4.8% compared to 5% mortgage rate when amortized at 30 years.

Looking forward to seeing how this impacts the real estate landscape!

Project Zimbabwe. Asset inflation cures all

Only path forward is more debt on real estate. Forever debt slave in Canada

So if home prices drop, initial downpayment disappears 😬😬😬

The home price average in Canada is around $664,000. So in what areas of Canada do you find $1.5 million homes mostly. Maybe Vancouver, Toronto and Montreal? Those 3 areas are traditional Liberal strongholds for Parliament of Canada seats. Could this be more about vote buying than helping first-time home buyers in Canada?

Let the bubble grow! All this does is put more money in the pockets of the bankers at the expense of years of labour of the average person. Terrible.

Encouraging more debt slavery. Western society will never leave debt cycle and one day it will be over.

I think the part you're missing from the situation is that the BOC is behind the curve on the inflation fight. Inflation has essentially been wiped out (higher prices are here to stay though...). Although these moves might stimulate the real estate markets a bit in Toronto and Vancouver, there is SO much more than goes into the overall inflation rate than just housing in those two markets.

This is clearly a terrible idea

debt debt and more debt, when the balloon does burst, it will be epic, 2008 epic,

First off, why the he11 is his name Tiff? Is that short for Tiffany?!?!

Whats the point?Most people cant qualify for these insane mortgages.

We have a big house deflection, we need to stabilize the price to avoid deflection

Favoring new construction why?

it takes a few minutes to see this isn't helping - especially since most of us talk to our real estate agent first, and then...

The governments goal with this is to bail out the developers and banks. They would like to socialize the loss on condos, primarily in Toronto, using taxpayer dollars. Without this, the banks and developers are in trouble with current inventory and sales levels.

I think its more important what Fed does next for BoC to decide their next move

Qualify thing is Really Hard.Forget other lollypop.

Inflation cools to 2%!!! Yes! Time for more rate cuts!

While it means more money in my pocket as a person very exposed to real estate, it also means more long term inflation, currency debasement (necessary for the feds/provinces to pay their ballooning debt in future) and worsening prospects for already-eroded prosperity in this nation. It also injects some actual-purchasing demand into the stalled construction biz to help solve the dire supply problem in SFH. I'll probably lose my new tenant as they are high income while saving for a downpayment and may suddenly be ready to buy a house, and I had several folks like them interested in my rentals. Nice to see a young couple getting into ownership though, being locked out into the age 30s or 40s is sad state of affairs.

Loan interest now skyrockets

Tax the rich! Do it before they own everything. Seriously.

No cap , unlimited amortz. needed like up to a 1000 yrs. or so and mortgage rates at -0.75% lol

I'm not sure you can jump the gun and say the new rules are inertially inflationary. I agree the new rules are probably politically motivated but what isn't? Also, mortgage insurance threshold has been at $1 million since 2012 so it's probably due time it is increased seeing as the average home price has nearly doubled since then.

No one is buying a 400 square foot condo for 500k.

i just need to subsidize demand i just need to subsidize demand i just need to subsidize demand i ju

Study Bitcoin!

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🎯 Its smell stank. Not increasing supplies at all, but busy increasing demands; aiming to hike the home prices, bank profits, & tax intakes, even in recession!