Huge news March 19!!!! Bye bye stress test and hello 30-35 year mortgages
Liberals are in a huge hole thx to SNC and RBC has thrown them a lifeline to get people back on their side.
THE CANADIAN PRESS/Frank Gunn)
Finance Minister Bill Morneau does not have a “magic bullet” budget measure up his sleeve to meaningfully help millennials priced out of the housing market, Royal Bank of Canada warns.
The Trudeau government is set to release its pre-election budget on March 19. Morneau said in January that “affordable housing for millennials” will be addressed when the Liberals lay out their spending plans, without delving into specific details.
RBC has advised them to drop the new mortgage stress test.
“On the surface, ideas like relaxing the mortgage stress test, extending the maximum amortization period for insured mortgages, or increasing the amount of RRSP take-out for a first home down payment might bring short-term relief to buyers,” he wrote in a research note. “What millennials in Vancouver and Toronto really need is more inventory of homes they can afford, and a better mix of housing options – be it to own or rent.”
Reason: Title edit