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The Canadian government doesn’t favour allowing longer mortgage terms, but it is monitoring whether the mortgage stress test is having the desired effect, Prime Minister Justin Trudeau said.
When asked about raising the maximum mortgage amortization for first-time buyers to 30 years at the Canadian Home Builders’ Association conference in Niagara Falls on Thursday, Trudeau said that he instead wants to introduce a program that sees the government take a stake in some home purchases and increase the funds that buyers can take from retirement savings.
“Which is why, when we looked at all the different measures we had, we really, really liked the shared equity program,” he said.
Trudeau agrees that a 30-year mortgage can lower payments on a monthly level, but he said that, overall, it increases the amount borrowers are going to pay out in interest over time.
“We...
