Members of Canada’s national mortgage industry association were pleased to have had the opportunity to meet with over 50 Members of Parliament and senior government officials over the past two days. Members discussed issues of housing affordability, availability and accessibility as well as the negative impacts that the recent mortgage rule changes are having and will continue have on Canadian consumers.
“We are concerned that the cumulative impact of recent mortgage changes are slowing housing market activity, decreasing competition and increasing costs for consumers,” said Paul Taylor, President and CEO of Mortgage Professionals Canada. “That said, we have been encouraged that Members of Parliament are listening to our concerns, and we continue to inform them of the positive role mortgage brokers play in the market”.
Mortgage Professionals Canada acknowledges that the initial objective of the changes was to cool down certain markets and there are signs that this is being achieved, at least in the Greater Toronto Area and to a lesser extent the Greater Vancouver Area. However, there is evidence of reductions in housing activity, both sales and housing starts, in areas of the country that were already moderate, flat or even declining.
CMHC’s insured volumes fell 34% in the first six months of 2017. This number is indicative of a reduction in home purchases by young Canadians from middle and low income families, and first time home buyers. As the voice of Canada’s national mortgage industry, the association is concerned that the combination of the changes, and the speed with which they have been cumulatively implemented, have created some adverse effects which could cause a potentially significant decline in housing activity nationally. This will be accelerated by the recent OSFI decision to add a stress test to all uninsured mortgages.
Mortgage Professionals Canada is the national mortgage industry association whose members include mortgage brokers, mortgage lenders, mortgage insurers and industry service providers. The association represents over 11,500 individual members and over 1,000 businesses across Canada.
SOURCE Mortgage Professionals Canada