_News Talk 770
One Alberta economist says first time home-buyers are going to have to lower their expectations in a new home. That after the feds announced they're tightening up mortgage rules to try to curb rising household debt.
The changes mean the maximum mortgage payment time is lowered to 25 years, down from 30.
The feds will also insist prospective buyers are able to afford not only mortgage payments, but the property taxes and heating costs on their home.
Todd Hirsh, an economist with ATB Financial says this move by Ottawa is a good thing for first time home buyers who are sometimes tempted to get more house than they can afford...
Also new today..refinancing loans will be limited to 80 percent of the value of a home, from the current 85 percent.