Your Home Sold
GUARANTEED Or I’ll Buy It! *
Rob Golfi
OCT 2016 - VOL 88
REAL ESTATE M A R K E T WA T C H Sales Representative
PRESENTED BY THE THE GOLFI TEAM
New Mortgage Rules will ‘reduce the risk’ a housing crash poses to Canada’s economy
C
anada’s finance minister believes the housing market remains hot, but healthy. It just needs a little more regulatory care to keep it that way and not harm the economy in the process.
For now, Bill Morneau’s prescription calls for some gentle adjusting of existing rules — like closing a tax loophole on nonresident real estate investors — along with new measures, such as a mortgage-rate “stress test” to ensure hopeful buyers can afford to get into the market in the first place and meet their payments when lending levels begin to rise. “Overall, these measures should reduce the risk of a knock-on to the Canadian economy from a possible correction in Vancouver and Toronto,” said Sal Guatieri, senior economist at BMO Capital Markets, following the minister’s announcement of the changes on Monday. “There’s enough here (in the new rules) to slow the markets — especially foreign demand in those markets,” Guatieri said. “But what these measures will also do is reduce the risk of a correction down the road should prices in those two cities continue to rise at double-digit rates.” Both the federal government and the Bank of Canada have been attempting to cool the housing market in the post-recession environment of low-for-longer interest rates. Ottawa has attempted to rein in the market through progressively tighter regulations on the length and levels of mortgages, particularly in Vancouver and Toronto where prices of homes have been on a steady upward trajectory — even as interest rates have remained at near-historic lows. (Continued on page 2) Stephen Poloz, the central bank governor, has been at pains to remind Canadians that rates will eventually begin to go
905-575-7700 905-945-0188 GolfiTeam.com
Sharon Stafford*
Wendy Murray-Nicholson*
Binda Traver*
Monique MacKay*
Mike McNeil*
Donatella Pepe*
Dan Golfi*
Rose Pimenta-Martinho*
Jeff Golfi*
Jennifer Draho*
Chris Sarievski*
Matthew Randazzo*
Hank Balfoort,
BROKER OF RECORD
Phil Golfi*
Ashley Sidler*
Peter Glenney *
*Seller & Rob must agree on price and terms.