Nicolas Marceau, Parti Quebecois finance minister, is echoing similar sentiments to many mortgage brokers: That the Canadian mortgage regulations should be region-specific.
"I know that the federal government is worried about what is happening elsewhere," Marceau said at the Fenêtre sur le marché conference according to the Montreal Gazette. "If we implement a coast-to-coast solution ... that might prevent a bubble in the rest of Canada (but) it would be at a great cost to Quebec.
“The impact of the tightening of mortgage rules in July 2012 was felt strongly in Quebec, a lot more than elsewhere."
More than 450 people attended the conference, presented by The Québec Federation of Real Estate Boards (QFREB) in partnership with the Greater Montréal Real Estate Board.
Quebecers, in particular, have felt the effect of tightened lending because of the high proportion of first-time buyers in the province, according to Paul Cardinal, manager of the market analysis department for The Québec Federation of Real Estate Boards. He points to the drop in sales across the province last year as evidence.
“Across the Montréal Metropolitan Area, sales of residential properties fell by 9 per cent in 2013, indicated Paul Cardinal, Manager of the Market Analysis Department at the QFREB,” the official release from QFREB states.
The subject of region-specific mortgage rules is nothing new, with brokers in smaller markets especially fond of the idea.
“There has been a boom that just never went away in Vancouver and Toronto but here in the Maritimes, housing worth hasn’t gone up,” Kent Farnsworth of Mortgage Alliance
Simply Mortgages told MortgageBrokerNews.ca in November. “We’re painted with the same brush where business is booming and the national state of the economy is affecting these markets a lot more than smaller ones.”