Official Warns Against Manipulating Mortgage Rules for Affordable Housing

November 6, 2024 TruthUSA

The senior deputy governor of the Bank of Canada is cautioning against changing mortgage rules in an attempt to make homeownership more affordable.

Carolyn Rogers is giving a speech today on the mortgage market at the Economic Club of Canada in Toronto.

She emphasizes that achieving better housing affordability requires finding a balance between supply and demand, a process that will take time.

Rogers warns that overly relying on measures that reduce monthly mortgage payments could have negative long-term effects on households’ financial well-being, as well as the mortgage market and the economy as a whole.

The federal government has recently announced an expansion of eligibility for 30-year mortgage terms for first-time buyers of new builds, extending to all buyers of new builds.

Rogers explains that while opting for a 30-year mortgage may lower monthly payments by approximately $200 on the average loan, it ultimately increases borrowers’ overall interest costs by $50,000 over the loan’s lifespan.