While economists are in agreement that federal-level steps such as Finance Minister Bill Morneau’s announcement of new mortgage measures last week are needed to address the affordability situation in the country’s hottest markets, the jury is still out on whether the current approach is too stringent or too timid. “[Last week’s announcement] is the sixth […]

The revisions to mortgage rules announced last week would have better served the Canadian housing sector by being implemented in small stages, not as a sudden regulatory upheaval. B.C. Real Estate Association chief economist Cameron Muir noted that the new measures introduced by Finance Minister Bill Morneau last week would—instead of cooling the markets as […]

The new federal rules governing Canadian mortgage will hit millennials’ home buying plans the hardest, according to the B.C. Real Estate Association (BCREA). With the regulatory changes coming into effect on October 17, the BCREA warned that most young professionals and starting families will face greater challenges in getting their homes as they can lose fully […]

It may be the most overlooked aspect of the Ministry of Finance’s most recent rule change announcement, but one economist who expects banks will soon shoulder more mortgage risk believes it will have a major impact on consumers. “I believe that the ultimate proposal for lenders to take on the burden of more risk could […]

A petition requesting the Department of Finance reconsider its recent mortgage rule changes has been launched. It reads: In light of the new mortgage rules in Canada that are scheduled to take affect October 17, 2016 the mortgage, real estate and insurance industry, as well as homeowners and citizens here believe that the rules imposed are excessive […]

Yesterday, Ottawa unveiled major initiatives to slow housing activity both by potentially discouraging foreign home purchases and, more importantly, by making it more difficult for Canadians to get mortgages. As well, the Finance Minister is limiting the degree to which mortgage lenders can buy portfolio insurance on mortgages with downpayments of 20% or more. Ottawa […]

Finance Minister Bill Morneau announced three new housing measures aimed at protecting the nation’s housing industry. Those preventative measures are; Standardizing lending criteria for high- and low-ratio mortgages, including a mortgage stress test Closing tax loopholes for capital gains exemptions on principal residence sales Consulting with industry stakeholders to ensure risk is properly distributed. This […]

Real Gross Domestic Product (GDP) in July was expected to continue its rebound from May’s steep, wildfire-driven decline, but the 0.5% monthly gain was better than many analysts had expected. The key driver was higher output in the mining, quarrying and oil and gas extraction sector. The rise in July followed a 0.6% increase in […]

A major mortgage lender and Canada’s largest private mortgage insurer say that homebuyers are set for increased costs if proposals by the Office of the Superintendent of Financial Institutions to strengthen capital requirements are introduced. Mortgage insurer Genworth says that “overall, the company supports OSFI’s efforts to develop a more risk sensitive capital model to […]

Canada’s financial services regulator released new draft capital requirements for federally regulated mortgage insurers to better reflect growing risks in the country’s housing markets. The Office of the Superintendent of Financial Institutions said Friday the new requirements, which will come into force Jan. 1, are aimed at allowing insurers to better withstand “severe but plausible losses.” […]