Ottawa’s latest housing crackdown has some wondering — why now?
The latest tightening of mortgage rules might come down to a couple of thousand dollars for the average Canadian consumer but that still has many wondering why Ottawa is cracking down once again on housing.
The newest move to once again tighten mortgage regulations has left many wondering why. It was announced on Monday that the Canada Mortgage and Housing Corporation (CMHC) is introducing a $350-million cap per mortgage lender per month.
Although this new development may only amount to a small cost difference for the average Canadian home owner, market analysts are still confused about the timing. "I thought with the changes they made last fall, that they were done. I'm a bit surprised by the timing," said Peter Routledge, an analyst with National Bank.
This change once again sparks debate about an impending hard or soft landing for the Canadian housing market, causing some to ponder if neither is the case.