Housing crisis: Canada eases some mortgage rules [Video]

OTTAWA –

Finance Minister Chrystia Freeland on Monday announced changes to some mortgage rules as part of an effort to make housing more affordable, a critical political issue that has hurt Prime Minister Justin Trudeau and his Liberal government.

Freeland said the government was increasing the cap on insured mortgages to $1.5 million from $1 million earlier, which would allow more people to buy a house with the minimum down payment already required of five per cent.

Previously, Canadians who do not pay at least a fifth of the cost of the house as a down payment need to take out mortgage insurance, but the insurance was available only for homes priced at $1 million or less. That limit is now $1.5 million.

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In addition, purchasers will be able to take out loans for a 30-year period …