Overview

• 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.