Mr. Morneau, don't drive up home prices by loosening lending standards.

0 have signed. Let’s get to 500!


Federal Finance Minister, Bill Morneau, has indicated that the federal government appears to be considering a budget announcement that would allow first-time homebuyers to obtain 30-year insured mortgages, up from the 25-year limit now.

In 2006, Bank of Canada Governor David Dodge, criticized the CMHC for loosening lending standards, correctly pointing out that the new lending policies were inflationary;

"We were very worried that by loosening up the rules about mortgage insurance we were putting additional pressure on Canadians to borrow for housing, and that was leading to house price inflation and increased indebtedness", Mr Dodge had said.

As it was in 2006, loosening lending standards today will only allow Canadians to borrow more and create upward inflationary pressure on home prices. The answer to Canada's high debt loads and high home prices is not more debt.

We, the undersigned, strongly encourage Mr Morneau to leave CHMC amortizations at the current 25 year limit, or to even consider reducing them.


Want to share this petition?