Mortgage rules come with praise and warning [Video]

Ottawa’s new mortgage rules set to take effect at the end of the year are drawing both praise, and caution in southern Ontario.

Last month, the federal government announced it was making the “boldest mortgage reforms in a decade” aimed squarely at young people trying to buy a home.

“I would not want to be a first-time homebuyer at this moment in time,” said Fred Godbolt, a financial advisor with GC Financial Solutions Group Inc. based in Exeter, Ont.

The changes will see the government insure larger mortgages, increasing the price cap from $1 million to $1.5 million and expand eligibility for 30-year mortgages to all first-time homebuyers as well as those buying new builds. In a news release, the government identifies high mortgage payments as a barrier to homeownership “especially for Millennials and Gen Z.”

The moves are somewhat concerning for Godbolt, who points to increased carrying costs as a potential budget buster …