In 2006, mortgage rules were progressively relaxed here in Canada. When the loosening measures were complete, amortization periods had been extended to 40 years from 25 years, and the 20% minimum down payment had been reduced to zero. House price increases began to accelerate. By 2012, the proclamation of tough new mortgage rules to cool overheated markets simply represented a return to the historical norms of 2006.
Recently on The Rick Mercer Report, comedian Rick Mercer offered his take on the impacts of the Canadian Finance Minister’s tinkering.