The federal government is putting an end to 30-year mortgages in Canada. The move came as somewhat of a surprise, but it’s designed to cool the housing market and limit the amount of personal debt that Canadians have been piling up in recent years.
With the global economy still sputtering along, it’s clear that interest rates aren’t going anywhere in the next year or two. This left the federal government with little choice but to step in with changes to mortgage rules for the 4th time in 4 years.
Will this be enough to deflate the housing bubble in markets like Toronto and Vancouver without triggering a larger collapse across the country? Should the federal government have gone even further by increasing the minimum down payment requirements from 5% to 10%?
It should be interesting to see how this all plays out.
Here’s a look at some other interesting personal finance articles from this week:
- My Own Advisor says age 50 is too late to start saving for retirement
- MoneySense looks at the most common mistake people make with their money
- AAMP Blog asks should the price I paid affect my decision to sell a stock?
- The Passive Income Earner explains how to know if you have a debt problem
- Million Dollar Journey looks at getting the biggest bang for your home renovation bucks
- My University Money explains why you should take out student loans
- Financial Uproar says you should buy assets instead of going to college
- Canadian Finance Blog explains how I made $200 playing a video game
- Planting Money Seeds looks at freelance writing and using the 5 Ws (and How) of journalism
- Young and Thrifty compares TFSA vs. RESP contributions
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Have a great weekend, everyone!