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reply 109 vote 57

Has Flaherty gone too far too fast with the changes to the mortgage rules?

It seems that the tightening of the mortgage rules that came into effect in July and November are having the desired effect which is to cool the real estate market in order to control spiralling household debt levels. Considering the jobs that are at stake and the health of the overall economy, do you think the federal govenrment has gone too far too fast implementing these changes?.@BuzzBuzzHome Team @mark mclean @Matthew Slutsky
Ontario / New Developments
reply 92 vote 6
Great question @Josie Stern.

I would say, no. I'm not traditionally a Conservative supporter but, in their oversight of the housing market over the past few years, I think they've done a pretty fantastic job. A lot of economists who were concerned before are now saying that even if housing prices do fall, there is no chance of a US-style crash, rather prices will just level out and maybe dip a bit.

It's a unique circumstance today because, traditionally, when prices are going up across the board including asset prices like homes, the Bank of Canada steps in to raise interest rates. However, because other sectors of the economy have not rebounded in quite the same way as the housing market, Mark Carney and the Bank of Canada have been rendered powerless.

I think it was great that Jim Flaherty recognized the necessity to stifle what could have become a more serious asset bubble and nipped it in the bud.


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