Another day, another point of view about Finance Minister Jim Flaherty’s warning that the government is considering making changes to mortgage lending rules to avoid a housing bubble. Recently, I wrote about a mortgage broker who thought that tightening mortgage requirements would have a negative impact on home buyers and thus the overall housing market, which would in turn impact the economy.
While some buyers might feel “punished” by the tightened requirements, the other side of the coin is that Flaherty and the government might be saving a lot of people from future personal debt crises, which again, would impact the economy.
So what to do?
Obviously, low interest rates are a boon for those in the market for a mortgage, but it’s important to remember that the current market is a temporary thing. If you’re in doubt, a mortgage broker can help you figure out how much you can comfortably afford to borrow.
