Housing Heating Up in Canada
February 8, 2010 by admin
David Tsao
News about mortgage rules in Canada are surfacing again. With the average price of a home reaching $337K in December 2009 (a 19% increase from the same period a year ago), the big banks urged the Canadian government to tighten lending requirements by shortening amortization rates to 30 years and bumping up minimum the down payment on a home purchase to 10%. Unfortunately there seems to be some confusion as Canadian Finance Minister Jim Flaherty thinks there is "no clear evidence now of a housing bubble in Canada." I’m not sure what planet he lives on. I applaud the bank’s willingness to let go of short term profits in order to avoid issues similar to the US. People can debate whether the Canadian housing market is in a bubble or not, but what is certain is that a housing correction will take place.
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