Three months ago, Finance Minister Jim Flaherty told banks to tighten lending on their own. Now he’s doing it for them.
The Department of Finance (DoF), in concert with OSFI, released a buffet of mortgage rules Thursday. By CanadianMortgageTrends.com’s count, there are eight salient changes that, when combined, will have a measurable impact on housing. (See: New Mortgage Rules and OSFI Guidelines [B-20] for rule summaries.)
The motivation for these moves is captured in Flaherty’s press briefing comment: “I have been listening to the market, and quite frankly I don’t like what I hear.” Loose translation: The debt and housing train is in danger of running off the rails.
The DoF’s solutions to this problem will influence our market for years to come.
Will house prices drop and sales decline? Rob Carrick takes a look at what Canadians can expect in the short- and long-term.
Click here for the Globe and Mail video called: Living in a fool’s paradise of low interest rates.
Amid waves of troubling global economic news, there’s a sleeper story that’s gone largely overlooked, particularly in financial markets.
The US housing market is doing much better. And it’s now on the cusp of what could be a dramatic turnaround.
That’s the conclusion of a new report by Vancouver-based independent housing Economist Doug Smyth, who argues, among other good things, that millions of newly created jobs will eventually power another boom in demand for softwood lumber.
Smyth’s prediction is based on a much more impressive recovery in the US jobs market than is generally recognized. That’s driving mortgage foreclosures down, and household formations and consumer spending up.
Click here for more from the Globe and Mail.