“Preliminary data received since the government implemented its most recent adjustments to mortgage rules in October, 2016, suggests that the rule changes are having their intended effect,” states Mr. Morneau’s letter to the finance committee.

“A decline in the share of new insured loans issued to highly-indebted borrowers suggests that the quality of credit is improving in the high-ratio mortgage market. This development helps to ensure that Canadians are taking on mortgages that they can afford.”

“Additional government support for home ownership, especially in the context of housing markets experiencing rapid price growth and restricted housing supply, are likely to be counterproductive,” Mr. Morneau wrote. “Policies to further boost home ownership by stimulating demand would exert more pressure on house prices, with little or no positive impact on housing affordability.”