Aug 06, 2013
By AM740 Staff
The housing market is in for a cooling-off period.
That’s the reaction from Barry Schwartz, vice president and portfolio manager at Baskin Financial Services, to new restrictions from Canada Mortgage and Housing,
CMHC is limiting the number of new guarantees on mortgage-backed securities to a maximum of 350-million-dollars.
The federal Crown corporation was given authority to guarantee up to 85-billion dollars this year under the program.
The conversion of loans into securities with CMHC backing is a way for lenders to tap funds from a broad range of investors and enables banks to issue more mortgages and at a lower cost.
Last week realtors here in Toronto and in Vancouver released results showing a strengthening market in Canada s two most expensive cities for housing.