The Globe and Mail reports in its Thursday, Nov. 7, edition that a senior official from the Bank of Canada warns that the new easier lending rules, which allow smaller down payments and extended payment terms for first-time buyers, come with long-term costs. The Globe's Rachelle Younglai writes that these changes, aimed at helping younger Canadians enter the housing market with average home prices at $670,000 and over $1-million in cities like Toronto and Vancouver, may reduce short-term mortgage costs but could lead to higher long-term expenses. BOC senior deputy governor Carolyn Rogers emphasized this caution during a speech at the Economic Club of Canada. Using today's interest rate and the average mortgage size, Ms. Rogers said that a borrower who stretches out their mortgage payments over 30 years instead of 25 years could reduce their monthly payments by $200. However, she said those borrowers would end up paying an additional $50,000 in interest costs over the life of the mortgage. As well, she said that even though lenders will profit from the longer mortgage terms, she said they will face risks because there is less equity or capital available for the homeowner if they encounter financial stress.