I’m really confused as to why everyone ELSE is so confused about the new mortgage rules. The government is worried about a housing bubble. Prices have gone up 20% in some parts of Canada in just one year. Has the value of property really increased or is this increase based dependent on speculation?
By changing the mortgage rules, the government has answered that they think it is partly due to speculation. The new policy initiative has raised the down payment requirement for investors to 20%. It’s pretty obvious, then, that they’re targeting investors. But some people are still confused:
As a result [of the new rules], there will be fewer investors buying and more properties will be available. Properties will stay on the market longer and prices will decrease. To me, this is counterproductive. The Vancouver Sun
…well, DUH! That’s what the policy is supposed to do. They are trying to cool down the market. The author goes on to suggest another policy initiative instead:
It should provide tax credits for anyone interested in real estate investments and it should allow real estate investments to be purchased directly from their RRSPs. The Vancouver Sun
Uhh…maybe. If they were aiming for the exact opposite effect.
Just accept that the government is targeting you and the housing boom. You’ve made quite a bit in the past year. Take that money and put it into some USD denominated assets while the loonie is a parity! Buy some real estate somewhere else even! Whatever you do, stop whining that the government is “inadvertently” targeting you. They are targeting you directly.