On October 3, 2016 Finance Minister Bill Morneau announced big changes to Canada's mortgage lending rules, designed to make it more difficult for high ratio borrowers to qualify for mortgages.
It appears that both the government and industry professionals believe that the sky is falling. On today's show Ted Michalos and Doug Hoyes discuss how the new rules will impact borrowers, lenders and more. We also ask the important questions:
Is it really necessary for the government to protect the big banks who earn huge profits from loan losses? Doesn't this guarantee simply cause the big banks to lend more money on high ratio mortgages to heavily indebted consumers?
Finally, we give our predictions on how these new rules will impact the real estate market (and it's not pretty).