NLAR Statement on the Government of Canada’s Housing Market Measures
Announced October 4th
“The Canadian housing market is a mix of many local markets with only a handful of regions (Greater Vancouver or the GTA) in which a high level of foreign investment is a concern. NLAR is encouraged that the government has taken a restrained approach, in line with what we have recommended through the Canadian Real Estate Association.” said NLAR Chief Executive Officer Bill Stirling. “Other policy instruments at the federal government’s disposal are far blunter and would potentially damage markets which are not on their radar screen or are, in fact, struggling.”
Specifically, the government announced measures to enhance fairness by closing a tax
loophole that they believe is being exploited by foreign buyers. “Our members are certainly supportive of rules being followed and efforts to ensure that the same tax rules apply to everyone,” said Mr. Stirling.
Consistent with the government’s previously expressed concerns, they also introduced
additional measures to address long-term housing affordability. A mortgage rate stress test will now be applied to all new mortgages that are insured. The new test will ensure that homebuyers can realistically afford to pay their mortgages should interest rates rise.
NLAR and CREA will continue to meet with the government as this file evolves in order to express our members' views, with a goal to underscore that Canada is made up of many housing markets, not only those in large cities, and that current and future efforts must reflect that reality.
Bill Stirling, CEO
NLAR Statement on the Government of Canada’s Housing Market Measures Announced Yesterday.pdf