New mortgage reforms targets Foreign Buyers, Mortgage Debt

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On Monday, October 3rd, 2016 Ottawa announced new mortgage rules to curb risks in the housing market, unveiling new measures to crack down on speculation by foreign investors and make it harder for homeowners to acquire mortgage debt.

Finance Minister Bill Morneau announced a series of new mortgage rules , including more stringent “stress testing” for borrowers who take out insured mortgages and rules aimed at mortgages with high down payments.

In an interview, Mr. Morneau said the new measures are aimed at addressing the government’s concerns that extremely low-interest rates have encouraged Canadians to overextend themselves financially, posing a risk to both individual homeowners and the broader financial system.

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