There was a great article written by Rob McLidster for CanadianMortgageTrends.com which outlines the aspects of the mortgage/real estate industy the new government can have an impact on. I beileve him to be spot-on with a number of his inferences:
– Higher Fixed Rates (slightly,since they’re not worried about a balanced budget, this throws off bond yeids.)
– Prime Rate Stays or Increases (because they’re spending, there is less need to stimulate the economy with lower interest rates.)
– Increased Real Estate Activity (due to policites the Liberals have said they wish to implement, like more access to RRSPs for down payments, “keeping home ownership within reach”, potential +25 year amortization for new homebuyers.)
– Increased Mortgage Regulation (compared to Joe Oliver’s oversight, they may meddle a bit more. That’s not necessarily a goor or bad thing yet.)
So essentially not much will change from the direction we were going, but it will be interesting to see what specific changes they bring to the mortgage regulations. Time will tell!
DLC Canadian Mortgage Experts