As tougher mortgage rules slow housing market, critics call for a reversal
The real estate industry has ramped up its attack on rules making it harder to borrow but its challenges face one big obstacle — mortgage restrictions are working exactly the way the federal government wants them to.
The recent slowdown in the Canadian housing market has sparked recent debate among economists, builders and the Canadian Association of Accredited Mortgage Professionals (CAAMP). Some believe the new mortgage regulations implemented this summer by the federal government are to blame, others believe the market was already slowing by the time the new regulations took effect.
Some are calling for a reversal, and although it isn't out of the realm of possibility, Finance Minister Jim Flaherty has indicated he has no intention of reversing the rules anytime soon. "The government in general is walking a tightrope here. On the one hand they are concerned about household debt and all these insured mortgages. But on the other side, housing is an important contributor to the overall economy," stated Jim Murphy, chief executive of CAAMP.
For more information on how the new mortgage regulations impact you, talk to an Ottawa Mortgage Broker.