03 October 2008

At least he's got a plan

While the Conservatives race to cobble one together for release on Tuesday and Stephen Harper and finance leprechaun Jim Flaherty do their best Chip Diller impressions - all is well - at least one party actually has a plan to deal with the economy.

-srbp-

3 comments:

wilson said...

I enjoy your blog. You are lways searching for the facts.

This has been ignored by all the opposition parties:

Ottawa tightens mortgage insurance rules
Wednesday,
July 9, 2008
CBC News

''The federal government said Wednesday that it is tightening the rules relating to government-guaranteed mortgages,
even though there is no evidence that the Canadian market is facing the kind of turmoil that has disrupted the United States.

The new rules, set to take effect Oct. 15, are a "responsible and measured approach … to reduce the risk of a U.S.-style housing bubble developing in Canada," the Department of Finance said in a news release.

However, it also said that Canadian creditors'
"prudent and cautious approach" to mortgage lending, as well as sound supervision, have "allowed Canada to maintain strong and secure housing and mortgage markets."

The government said the measures will apply to new,
government-backed, insured mortgages. "Canadians who already hold mortgages will not be affected," it said.

The changes include:

Cutting the maximum amortization period to 35 years from 40.

Requiring a minimum down payment of five per cent, whereas loans for 100 per cent of the price are possible now.

Establishing a requirement for a consistent minimum credit score.
Introducing new loan-documentation standards.

The government acknowledged that the proportion of bank mortgages in arrears is stable at 0.27 per cent,
"near the lowest levels experienced since 1990 and well below the highs of 0.65 per cent experienced in each of 1992 and 1997.".....''

http://www.cbc.ca/canada/story/2008/07/09/mortgage-rules.html

Deb Prothero said...

Edward;

I read your blog daily to find out what's happening on the rock.

Seems that the real truth addressing the above comment is that it was in fact the Harper government that extended these blessed 40 year 0% down mortgages to begin with. What kind of irresponsible government action is that?

I work in a homeless shelter so I am not opposed to very many measures that would allow any Canadian to have housing BUT stupid policies like the 40/0 policy was a deal breaker. Homeless shelters across the country can now look forward to a busy winter (again) as the people who couldn't then and can't now afford these foolish mortgages will now be foreclosed on and will find themselves homeless. At the shelter I work at we are already experiencing 120 - 140% overcapacity due to the losses of manufacturing jobs in Ontario. We don't need an influx now, thank you very much, Mr. Flaherty.

wilson said...

If I remember correctly Deb, it passed Parliament in Nov 2006,
and must have gone thru an opposition dominated committe with support from at least two parties, and support of the Liberal dominated Senate,
to pass.
I don't recall that it was a confidence vote.