The country’s biggest banks were caught off guard on Wednesday night as the Department of Finance prepared to clamp down on mortgages by reducing the maximum amortization for a government-insured mortgage to 25 years from 30.

Ottawa will also limit the amount of equity that can be borrowed against a home to 80 per cent of the property’s value, down from 85 per cent.

The moves are designed to cool the housing market and limit the record levels of personal debt Canadians have amassed in recent years. Figures from Statistics Canada show the average ratio of debt-to-disposable income climbed to 152 per cent, up from 150.6 per cent at the end of 2011. A rise in interest rates or further job losses could put some households at financial risk, endangering any economic recovery.

The Bank of Canada is expected to keep interest rates low for some time because the economy...

A STEP TOWARD AFFORDABILITY

“How will I ever afford to buy a home in Vancouver?!!”
 We are dealing in the priciest real estate in the country, that's a familiar lament we hear from our family and friends. Taking that first leap into home ownership can be a daunting prospect in a market of near record highs. Tempered only by historically low interest rates, likely nowhere is the conversion of renter to home owner more challenging than right here on the West Coast.

But thanks to new legislation recently passed in Victoria, the horizon is looking a little brighter for first time new home buyers in B.C.

The B.C. First Time New Home Buyers' Bonus is a one-time bonus payment of up to $10,000 for 1st time buyers of new homes in the province. Here are some of the qualifications needed to convert renters into owners:

• The Buyer cannot have owned a primary residence...

Click here to see an informative article that will show you 50 ways to green your home and save!

Ottawa, Ontario - The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

The outlook for global economic growth has weakened in recent weeks. Some of the risks around the European crisis are materializing and risks remain skewed to the downside. This is leading to a sharp deterioration in global financial conditions. While the U.S. economy continues to expand at a modest pace, economic activity in emerging-market economies is slowing a bit faster and a bit more broadly than had been expected. More modest global momentum and heightened financial risk aversion have reduced commodity prices.

Although economic growth in Canada was slightly slower than expected in the first quarter, underlying economic momentum appears largely consistent with e...