January 25, 2011

I want to hear from YOU!

Canada's economy is recovering but the global economic recession continues. Now is the time to plan the next phase of the Economic Action Plan. Our Conservative Government will continue to focus on protecting the financial security of hardworking Canadians and their families. In advance of Budget 2011, the next phase of Canada's Economic Action Plan, Ministers and Members of Parliament are reaching out to Canadians to discuss their top economic priorities.
Canada's economy is doing better than other countries, but we realize that the economy isn’t all just about numbers. It’s about people, families and their financial security. We know that Canadians are concerned about the economy. Canadians are concerned about their jobs, their retirement, and their families’ financial security. That is why we will secure our economic recovery by ensuring that our economic policies reflect the values and principles we share with hardworking Canadian families, including living within your means and reducing waste and duplication.
You will soon be receiving a mailout from my office asking for your priorities for our Government for 2011. Please take the time to fill it out and send it back to me. If you need more space to offer your opinion, remember that any mail to your Member of Parliament doesn’t require postage. You’ll find my email address on the top of the homepage. Whatever means of communication is easiest for you, I invite you to share your thoughts.

News from Ottawa

Ensuring the Long-Term Stability of Canada’s Housing Market

With the economic recovery still fragile, we are focused on ensuring stability and certainty in Canada’s housing market. Our Government constantly and closely monitors the housing market, ready to take prudent and sensible measures as needed to sustain the economic recovery and ensure its ongoing stability.

We are taking prudent and sensible action to strengthen Canada’s housing market, by:

1. Reducing the maximum mortgage period to 30 years from 35 years for new government-backed insured mortgages, which will significantly reduce the total interest payments Canadian families make on their mortgages.
2. Lowering the maximum amount lenders can provide when refinancing mortgages to 85 per cent from 90 per cent of the value of the property.
3. Withdrawing government insurance backing on home equity lines of credit.
   
   The prudent and sensible measures announced today will help sustain the economic recovery by ensuring the Long-Term Stability of Canada’s Housing Market.

Limit the Maximum Amortization Period to 30 Years





Lower the Maximum Refinancing Amount to 85 Per Cent of the Loan-to-Value Ratio

As an illustration, for a home valued at $300,000, refinancing at 90 per cent would allow the homeowner to access up to $270,000, whereas refinancing at 85 per cent would allow the homeowner to access up to $255,000. The lower refinancing limit means homeowners will keep an additional $15,000 in the equity of their home.

Moving to the New Framework

The adjustments to the maximum amortization period and the maximum refinancing amount will come into force on March 18, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011.