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.”

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