Bank of Canada Cautions Against New Mortgage Rule Adjustments

Carolyn Rogers warns that changes aimed at improving housing affordability may pose long-term risks to financial stability.

Bank of Canada's Senior Deputy Governor, Carolyn Rogers, advises against altering mortgage rules to address housing affordability issues.
Rogers emphasizes that a balance between housing supply and demand is crucial for long-term affordability improvements.
The Canadian government plans to extend the maximum mortgage amortization period from 25 to 30 years for first-time homebuyers.
While longer amortization reduces monthly payments, it significantly increases borrowers' total interest costs over the loan's duration.
Rogers highlights potential risks of increased mortgage renewals leading to higher household financial strain and delinquency rates.