Main Menu
In the News
Special Contributors
Special Report - Bedding
Events Calendar
Contact HGO
Merchandiser Winter 2015
Merchandiser Fall 2014
2014 Product Guide
Research Store

Canada Counts
A survey of Canadian buying intentions.
Purchase Report


Mortgage rules change in Canada PDF Print E-mail
Written by Tom Philp   

OTTAWA - The days of zero down and a 40-year mortgage are likely over for Canadians. Starting 15 October, the federal government will no longer guarantee a four-decade amortization with no down payment.

The government announced this week that mortgages will be limited to 35 years, require a minimum five per cent down payment, and be federally insured for only 95 per cent of the value of the home. At the same time, anyone borrowing mortgage funds must have a good credit rating and demonstrate that their debt servicing costs are not greater than 45 per cent of gross income.

At least one critic opined that with the Canadian housing market just beginning to cool after more than five years of rapid growth, the timing of this government decision will likely slow housing sales even more and depress home prices.

Liberal MP Garth Turner, the author of a book warning about a possible Canadian housing downturn, says the government's decision could trigger a devaluing of homes by about 15 per cent nationally and as much as 30 per cent in boom towns like Edmonton, Calgary and Vancouver. It could also prompt Canadians to move quickly to beat the October deadline.

The federal finance department said forthcoming mortgage rule changes are designed to avoid any mortgage crisis that could mirror the sub-prime mortgage fiasco in the U.S., rather than pointing to any fundamental problems in the Canadian system.

<Previous   Next>



Please, update your HGO profile

BRIGHTON, Ontario – To improve the efficiency of our newsletter delivery service and to bring ourselves in alignment with current Canadian legislation, we need our loyal readers to update their profiles.

If you’re in big ticket home goods, you can’t be without Home Goods Online – the only business-to-business news and information service for those working in Canada’s furniture, mattress, major appliance and consumer electronics industries.

Update Your Profile Now
Picture of the Day

Three members of the Bluewater Wood Alliance will exhibit for the first time at this week's High Point Market. Crate Designs will show its Brant collection of youth furniture. Made from Southern Yellow Pine, this 10-piece group features space saving beds, dressers and night table as well as a desk and chair set.The top of each case piece is made from the same material as kitchen countertops, making them durable and easy-to-clean. Click here to read our report. 



Donald Cooper
My Turn!
HGO Merchandiser
Upcoming Events
There are no upcoming events within the search range currently scheduled.
View Full Calendar