Evan Siddall, the CEO of the CMHC has preposed in a speech that now would be the time to raise the percent rate of down payment on home purchases. This is in response to the recent economic down turn. While he may have good intentions we believe that this is the worst time to restrict assess housing. For both ethical reasons and financial, we want the market to be strong and don’t want to punish people who want to stimulate the economy.
- Restricting lending right now seems like a bad idea when others are trying to keep the economy afloat.
- The best way to help the market recover is to keep money lines open and let the problems clear out.
- Putting a cap on lending right now would be a very bad idea overall.
“The time to tighten lending guidelines is when the economy and our real estate markets are strong, not when they are at their most vulnerable. That’s why our policy makers have responded with aggressive stimuli during the current crisis.”
Read more: https://www.integratedmortgageplanners.com/blog/monday-morning-rate-update/why-cmhc-shouldnt-raise-its-minimum-down-payment-from-5-to-10/