|2016-10-03||Bill Morneau||"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 remain strong, stable and resilient well into the future."||ic_open_in_new|
|2016-10-03||Bill Morneau||On Monday, Mr. Morneau called the higher down payments "the right measures at the time," but said that Ottawa saw it had more work to do to tackle risks in the housing market.
Mr. Morneau said the stricter "stress test" for some insured mortgages will likely have the greatest impact on expensive housing markets such as Toronto and Vancouver, but acknowledged it will also have an impact on home buyers in softer markets, such as Alberta and Atlantic Canada. "We're trying to manage the risk for all Canadians," he said. "So we worry about someone in Halifax or Ottawa or Saskatoon as much as we worry about someone in Toronto or Vancouver."
Mr. Morneau said he expected the changes announced Monday would have a "modest" and gradual effect on the Canadian housing market. "It's hard to state with certainty what the outcome will be," he said. "For some buyers they might defer their purchase for a little while; for other buyers they might decide to buy a slightly less expensive home."