So, here we are yet again...the government stepping in to aid the mortgage market and its record levels of household debt. The Globe and Mail reports that Ottawa has initiated a plan of action to implement a combination of mortgage adjustments.
The Finance Department says that Ottawa will stop backing a 35-year mortgage and reduce government backing of home equity lines of credit. Another adjustment will aim at how Canadians can draw on their home equity. It was just a year ago next month when the Finance Department lowered the maximum amount Canadians could withdraw in refinancing their mortgages to 90% from 95% of the value of their home. That number is now expected to be reduced once again from 90% to 85%.
The last maneuver could be in part a result of statistics published in 2009 showing that debt levels for Canadians has increased to record levels.
It is not clear when these changes may come into effect, but it will certainly continue the recent trend of making mortgage money a bit tougher to come by.
