The Canadian government should consider being flexible on its new mortgage lending rules because the impact has been longer-lasting and more significant than originally intended, Toronto-Dominion Bank says.
The changes mean federally regulated lenders must now run a 200 basis-point stress test on new mortgages, to ensure the quality of lending remains high amid escalating home prices. The measures are disproportionately affecting first-time homebuyers, who normally account for between 40 per cent and 50 per cent of the market, as well as cities that have more youthful demographics like Toronto and Vancouver, TD said.
The rules have pushed potential buyers into the rental market, leading vacancy rates for purpose-built rental units to fall by as much as 30 basis points in Toronto and Vancouver. That poses a “significant challenge” as those markets are already “severely under-supplied,” with current vacancy rates at just 1 per cent, the economists wrote.
banks are whores and don't give a f**k about anything but profits. how sick a comment that housing should be more expensive. I cannot wait for the bursting of this housing bubble which has been fuelled by money laundering fraud = Canada
scrap the mortgage rules for sure. they are useless and in the way. alternative lenders will be booming if this does not go away.
Rent seekers and parasitic peddlers of debt boldly point out pathway to making homes even less affordable and people even more enslaved to debt.
Are housing prices increasing, or is it just relative wages are decreasing?
Leave it and let the market correct itself
Why on earth would people want to pay even more than, the prices that are already the 2nd highest in Canada?.
Who needs that?
Terrible idea. Dont do anything to increase housing prices!
32k, so be it. Let the market depict how much a house costs! Sign me up!
Bank suggests selling more debt.... Fml
NancyPrentice6 Let TD make the rules and take the risk. Kill CMHC.
are we forgetting about the 2008 housing crisis again?😂😂
Ok so let’s not do that
I am excited to see how the millennial generation responds to this endless rise in housing costs. I wonder if this pressure on the working class has anything to do with our leaders importing 340,000 new people to the country every year.
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