22 October 2012
In his recent speech the Minister said he was satisfied with the proper slowdown at the condo markets in Toronto and Vancouver.
Those comments came right before Bank of Canada tomorrow’s decision on interest rate. We don’t expect any changes on interest rate, since low interest is crucially important for faster economic recovery. At the same time many have speculated that Flaherty might pull the plug on mortgage rules tightening once again, since household debt level hit the new record earlier this month.
In our opinion last round of mortgage rules changes hit first-time buyers the hardest. It might now take extra years for them to gather with bigger down payment to be able to qualify for shorter amortization. On the other hand, we see market is getting back to normal and banks are busy with new purchase applications!