An announcement was made by the Minister of Finance, Bill Morneau, about the three methods they plan on using to have the country’s real estate market protected. The preventive measures are outlined below;
#1. Fix tax loopholes for funds gains with principal resident sales being an exception.
#2. Refer to stakeholders in the industry to make sure the risk is evenly dispersed. Morneau told correspondents that this will have lender risk partaking as well.
#3. Have lending criteria regulated for high and low ratio mortgages, with a mortgage stress test inclusive.
Bill added that: “Canadians have told us they are concerned about growing household debt and rapidly rising house prices in some of our biggest cities, particularly in markets like Toronto and Vancouver. These concerns have grown over many years, and there are no quick fixes. The federal government plays an important role in ensuring that housing markets are stable and function efficiently.”
“My colleagues and I are committed to continuing to work with provinces and municipalities to address the concerns of middle class families, and to ensure Canada’s housing markets and financial system remains strong, stable and resilient well into the future.” Bill echoed out at the press conference where the alteration was announced, that he strongly has faith that the real estate market is unwavering and steady.