Trudeau Says New Mortgage Rules Cut Froth in Toronto, Vancouver

The Canadian government is monitoring whether tougher mortgage rules are having the desired effect but doesn’t favor allowing longer mortgage terms, Prime Minister Justin Trudeau said.

Trudeau, speaking to an industry group Thursday, was asked about raising the maximum amortization of a mortgage to 30 years, from 25 years, for first-time buyers. The prime minister said he opted instead to introduce a program that sees the government take a stake in some home purchases, as well as increasing the funds a buyer can take from retirement savings.