Canada’s Mortgage Rules
Of the latest three changes, the reduction of the maximum amortization period to 30 years has the most direct impact on the Canadian housing market. The changes to refinancing and HELOCs more directly affected the financing tools available to consumers. Consumer spending was also be impacted indirectly by the shorter amortization, which caused higher mortgage payments cutting into the remainder of household budgets. Generally, the shorter admissible amortization period raised the cost of home ownership in Canada.