The Globe and Mail reports in its Thursday edition that the Ottawa is mulling a budget announcement that would allow first-time home buyers to obtain 30-year insured mortgages, according to the Canadian Homebuilders' Association.
The Globe's Bill Curry writes that such a move would represent a change in direction after more than a decade of measures by federal Conservative and Liberal governments since the 2008 recession aimed at cooling housing markets and encouraging Canadians to take on smaller mortgages.
While the Bank of Canada continues to express concern about high household debt, politicians are also getting an earful from younger Canadians who cannot afford to enter the housing market.
Finance Minister Bill Morneau recently said he is looking at home affordability issues for millennials, but he has not publicly speculated on potential policy options.
Over the past two weeks government officials have met with the chief executive officer of the Canadian Home Builders' Association, to discuss potential budget measures.
Association spokesman David Foster said there is clear interest from government in the request put forward by housing industry groups to bring back 30-year insured mortgages.
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