Calls for finance minister to cool the market

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Cooling the housing market may be a good plan, according to one broker, as long as the government focuses on reining in this one type of buyer.

“I would say cooling the market sounds like a good plan, but how they cool it is the main question; in our area – it’s foreign money that is coming in and inflating prices,” Jeff Evans, a broker with Mortgage Architects Canada Innovative Financial in B.C., told MortgageBrokerNews.ca. “If the government were to do something to cool that segment, I would support it; if the measures make it harder for the average Canadian to buy, I wouldn’t support that.”

Debate around whether or not the new finance minister, Bill Morneau, should take measures to cool the housing market has already begun. One leading bank kicked off the discussion last week.

“I don’t like the recent trends in housing,” HSBC Chief Economist David Watt said, according to the Globe and Mail. “In our view, there is a strong case for further macro-prudential measures to manage potential risks to economic growth and financial stability from the housing sector.”

Some are suggesting Watt’s comments are meant to encourage Morneau to take a page out of the late Jim Flaherty’s playbook by implementing measures that will cool the housing market.

Those measures included lowering the maximum amortization limit and implementing a host of restrictions for conventional mortgages through B20. Measures that made it harder for the average Canadian to purchase a home.

That kind of policy would likely not be welcomed by the vast majority of brokers.

“The government should make it easier and not harder for Canadians to buy,” Evans said.
It remains to be seen how Finance Minister Morneau plans to oversee the housing market; neither he nor Prime Minister Justin Trudeau have commented on what policy they will take.
  • ken on 2015-11-13 9:36:58 AM

    Interesting.... making things tougher for lower to middle class to purchase and as always the well off will find a way to purchase anyway... sounds like some of the liberal voters didn't realize what they were getting into.

  • anonymous on 2015-11-13 9:46:54 AM

    Always have to look at the motivation of the banks when they make these suggestions.
    A message must always be judged by where it comes from.

  • Bruce on 2015-11-13 10:11:55 AM

    "Calls for finance minister to cool the market",
    Even before reading the article you know this was coming from either B.C. or a Toronto based Lender. Try some self control if you are that concerned.
    The world does not revolve around two Cities.

  • Linda durfy LUCAN ON on 2015-11-13 11:19:53 AM

    Please leave the market alone it tis working fine this is free enterprise at it's Best
    ITS THE ONLY JOB CREATION STATIGIC WE HAVE ,MANUFACTURING IS DEAD

  • Matt on 2015-11-13 8:32:22 PM

    The nonsense of two cities will punish the rest of the countries housing market... smart. Great way to kick start the economy!

  • Visitor on 2015-11-14 5:15:58 PM

    You dont want goverment involved and the market to watch itself? No problem...kill CMCH.

    You cant suck and blow.Pick one.

  • John Panagakos on 2015-11-16 1:39:56 PM

    Very Strange for HSBC to be sticking there noses in the housing market issue. Careful of Bankers trying to sway the finance minister , they have they're own hidden agenda . Just like former TD Chief Ed Clark 7 years ago he was the one pushing the finance Minister for Changes look what we got. In the subprime crisis HSBC was one of the BIGGEST losers in the US , In Canada they shut down the Broker Program out of Vancouver. They then overhauled they're entire banking model and stayed away from the masses to cater to High Net Worth Clients. If you didnt have $100,000 in account you were no longer account managed in the branch but sent to a call centre. Any more strickter rules won't affect HSBC's wealthy clients Only the masses will be hurtgs the same ones that voted for a Liberal change . Looking for Sunny Ways?

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