The federal NDP candidate for Huron-Bruce says the Harper government’s announcement this week to curb household debt is only helping the banks.
Grant Robertson says the new mortgage rules will have very little impact on people in his riding, as they already face rising costs for energy, and because of the HST.
He says seniors are in particular danger because as the costs keep rising, their pension payments don’t.
Robertson says the new rules don’t stop the banks from “gouging” Canadians with lending rates, and this is allowing the banks to make record profits off the backs of working Canadians.
Robertson says the Conservatives should instead be focusing on making life more affordable, and creating more sustainable jobs.
He says one way for people to afford the cost of living is on credit.
And he’s advocating the removal of the federal tax from home-heating costs.
Robertson says it’s a small step, but it will keep money in our pockets – which he believes is the real solution to minimizing household debt.
Robertson says this move is just further proof that the Conservatives are looking out for the big banks and big corporations, and not the average Canadian.
There are three new mortgage rules:
– Mortgage amortization periods will be reduced to 30 years from 35 years.
– The maximum amount Canadians can borrow to refinance their mortgages will be lowered to 85 per cent from 90 per cent.
– The government will withdraw its insurance backing on lines of credit secured on homes, such as home equity lines of credit.
The Conservatives say these rules are aimed at encouraging responsible lending and borrowing and encouraging people to increase their home equity.
