WHAT ARE THEY THINKING?
What ARE they thinking???
The Canadian government is expected on Monday to introduce new rules aimed at toughening up mortgage lending in an effort to curb further growth in record household debt levels.
The key change Finance Minister Jim Flaherty is likely to unveil is a cut in the maximum amortization period, to 30 years from 35 years. Mortgages with amortization periods longer than 30 years will no longer qualify for government-backed mortgage insurance, which is required for buyers with less than a 20% down payment on a home.
Pardon my ignorance here, but just because you pay off your debt 5 years sooner, you are still carrying that debt! And, because your monthly payment will now increase accordingly, I guess the retail sector will have to do without the sales that extra money would generate for the economy! 
What is so amazing to me is that CREDIT CARDS are the biggest source of debt - many at criminally high interest rates. Easy to obtain - and I don't see any toughening in that sector!
First home Buyers should be aware of these proposals. The chance to get through the narrow door to home ownership is getting slimmer.
As Ever, I will look for the POSITIVE side of this announcement... (I'M STILL LOOKING. HAVEN'T FOUND ANYTHING YET! STILL LOOKING...