New housing measures announced

by |
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 may include lender risk sharing, Morneau told reporters
“Canadians have told us they are concerned about growing household debt and rapidly rising house prices in some of our biggest cities, particularly in markets like Toronto and Vancouver. These concerns have grown over many years, and there are no quick fixes,” Minister of Finance Bill Morneau said. “The federal government plays an important role in ensuring that housing markets are stable and function efficiently.

“My colleagues and I are committed to continuing to work with provinces and municipalities to address the concerns of middle class families, and to ensure Canada’s housing markets and financial system remain strong, stable and resilient well into the future.”

During a press conference to announce the changes, Morneau reiterated numerous times that he believes the housing market is stable.
 
  • Andy the Mortgage Broker on 2016-10-03 3:18:55 PM

    Protect the nations housing industry from people buying homes? The government is just making it easier for the rich people to buy homes but harder for new home buyers. Did they not think the affect it will have on the mortgage broker industry? If we can't make money then there is no mortgage industry and people will have to deal with the big banks and who wants to do that!!!

    I think they forgot what CMHC is for and that's to protect us from a housing crash!!!!

  • BC Broker on 2016-10-03 3:20:52 PM

    The lower end housing which usually is insured will take a hit on prices I believe. Over 20% less buying power will make prices go down. The steps they are trying to put in to control the market from crashing could be the exact thing that crashes the market !!

  • Kris Kooblall on 2016-10-03 10:47:18 PM

    Canada's Housing Crisis

    Ottawa and the Federal Government of Canada has acted and the question is now:

    Are these actions sufficiently robust enough to reverse the destructive trajectory that the nation's housing market is on?

    Let us wait and see and my hope is that the Government of Canada has really done well here.

    Initial indications are that there is some degree of ambivalence as to the effectiveness and urgency of these measures as foreign buyers can get around residency and other possible ways to avoid paying the capital gains.

  • Citizen on 2016-10-04 2:12:48 PM

    Apparently the Government has listened to the people and has concluded that home ownership is not for everyone.
    They need to follow this up with massive tax incentives to get developers to build rental housing.

  • Walid Hammami on 2016-10-04 5:39:37 PM

    One amendement to the stress test is to use the posted rate but not on the full mortgage, just the balance remaining in 5 years.
    Since the rate is fixed there will be no fluctuation during the 5 years. That would be fairer and reasonable.

  • Jim D on 2016-10-19 9:29:17 AM

    I've been around long enough to survive at least 2 pricing corrections. and see first mortgage rates as high as 19%!!
    People found creative ways to finance and purchase then - and they will now
    Why all the doom and gloom predictions?
    The payments will be the same and
    The simple solution I see - Mommy and Daddy will be co-signing.
    Given that scenario, what is the real % of first time buyers who won't qualify??

  • Dave on 2016-10-03 12:10:37 PM

    Tax the purchases too across the country.

Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Name (required)
Comment (required)
By submitting, I agree to the Terms & Conditions