Mortgage Tests, Thanks Gord and Bombardier and #Moneytalk
The government appears to be worried about the state of home ownership and has proposed new rules that will require new mortgage applicants to pass a “torture test” (Guideline B-20). These new rules could lead to fewer approved mortgages. However, I believe that these rules are necessary as they will make it harder for people to put themselves in a financial bind. Although real estate agents who sell both new and used homes may not be pleased with these new rules, it remains to be seen what tactics they will use to work around them. Nevertheless, I am confident that these new rules will bring about positive changes in the housing market come the New Year.
Estimated reading time: 6 minutes
Table of contents
It was funny the first time I read the new rules I thought it was protecting the lenders (banks and such), but most pundits seem to think it is in place to protect the borrowers? I guess it protects both. However, we really won’t be able to tell for a while.
Gord Downie’s passing is a sad event. I was never a huge fan of the Tragically Hip, but I do enjoy their music. Mr. Downie’s battle against cancer was astounding to watch. He refused to give up, and simply fade away, he kept on going and for showing that kind of strength he should be admired. The world is a less interesting place with Mr. Downie’s passing.
Bombardier signed a deal with Airbus that will make their new C-Series Jets “American made”, which is an interesting way to get around the 300% levy being proposed in the States. Is this going to be a good move for them? Again, only time will tell, but the markets seem to think it was good (Bombardier and Airbus stocks are both up).
Recent Writings
I do think that Pessimists Make Better Financial Planners, and the new rules for house buying seem to agree with my statement. So many folks I know are far too optimistic in their financial plans, and inevitably something derails those plans.
Happy Thanksgiving Canada shows off one of the finest turkeys with a bacon weave that you will ever see. Yes my wife cooked that turkey (a while ago), and it was delicious. The only question is how to get more bacon on the turkey?
Payroll Donations at Work came up when I tried to make my payroll donations directly to my Church and found out just how much is taken from my donations as “management overhead”. I am not trying to stop you from being charitable, just want to make sure all the money you give goes to those who need it.
Micro Blogging on Finance
Kerry at Squawkfox was on the CBC talking about the new mortgage rules. Have a look.
