Government focusing on wrong areas

by Justin da Rosa14 Dec 2015
REP readers took the comments section to air grievances about the latest mortgage rule changes, arguing the Liberal Government should set sights on other issues.

“What a crock -- we have a finance minister who cannot and will not balance the governments books, who is increasing debt every day, (which effectively is an increasing debt on us the workers and taxpayers) and he has the nerve … to say we need to be careful about assuming debt,” REP reader Don Johnson wrote in the comments section. “He's worried housing prices may be affected by rising interest rates; I'm worried what happens when a Trillion and half dollars of government/provincial debt runs into a 2% interest rate rise and we the tax payers get stuck with another 30 billion dollars of interest debt we have to pay in new taxes.”

Finance Minister Bill Morneau announced new down payment rules for government-backed mortgages on Friday morning.

The minimum down payment for new insured mortgages will increase from 5% to 10% for the portion of the house price above $500,000, the finance ministry wrote.

Industry players are already predicting an increased demand for properties below the $500,000 threshold.

The changes are meant to reduce taxpayer exposure while supporting long-term stability of the housing market, according to the ministry.

However, many are arguing it isn’t low interest housing debt the government should be focusing on.

“But it's OK to let lender sell boats, ATVs and 90 inch TVs at 28% and have people approved for $50,000 credit limits at Canadian Tire and Costco?” one commenter wrote. “When will the government stop catering to the banks? Make these high interest debts illegal and Canadians will be just fine.”

COMMENTS

  • by Roy Singh 12/14/2015 10:39:47 AM

    I agree totally, the real issue is that they are trying to control borrowing on mortgage debt but do noting on the credit card rules. They are in the pockets of the Banks and someone needs to speak out about this. Furthermore, the way the banks have changed the interest rate differential calculation is bogus, unfair, and quite frankly price fixing.

  • by RFXER 12/14/2015 12:59:24 PM

    the new mortgage rule is deterring the middle class (lower sector of ) those who dream to buy their first home with just 5% and occupy it. It will have no effect on investors and the rich at all.

  • by P.F. 12/14/2015 3:06:24 PM

    I totally agree with all of the above especially Roy Singh's comments. In my opinion the Liberal party is "Liberal " yes! but with our money. They will spend, spend, spend to get themselves elected and re-elected and than tell us how good we have it! What with up to 54% of our hard earned dollars before HST is paid! Another 13% when we shop! is going straight into their pockets. Why shouldn't we feel eager to get up at 6:00am every morning to go work for the government? Oh sorry I must be dreaming I don't work for the government! But it sure feel's like it, outside of not having fat benefits, sick days, or a pension at age 55? Boy! it sure would be nice to work for the government! Ok I admit it! perhaps I am! aren't I?

    Sorry, as a Realtor I forgot to add 7 days a week after the 6:00am.

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