Queen's University

Ottawa changes mortgage rules: Queen's University expert

2012-06-25

Queen’s University finance professor Louis Gagnon is available to talk about today’s federal government announcement aimed at cooling Canada’s hot housing market. The government made several changes – including reducing the maximum amortization period to 25 years.

Dr. Gagnon is a former Royal Bank senior manager who is concerned that Canadians are taking on far too much personal debt.

"At long last, the Canadian government is coming to the realization that the ball was in its camp all along and that further tightening of mortgage rules is necessary to reduce Canadian households' vulnerability to future interest rate hikes,” says Dr. Gagnon. “The finance minister's decision to reduce the maximum amortization period – from 30 years to 25 years for insured mortgages – and to drop the maximum amount of equity that can be borrowed against a property – to 80 percent from 85 percent – was long overdue."

To arrange an interview, please contact communication officers Michael Onesi (office: 613.533.6000 ext. 77513, michael.onesi@queensu.ca) or Anne Craig (office: 613-533-2877, Anne.Craig@queensu.ca) at Queen’s University News and Media Services Department in Kingston, Ont., Canada.

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