REALTORS WANT EASED MORTGAGE RULES TO BECOME FEDERAL ELECTION CAMPAIGN ISSUE
Sep 12, 2019
By Bob Komsic
Associations representing nearly three-quarters of realtors in Canada are calling on federal politicians to commit to easing mortgage rules.
Saying too much regulation makes home ownership unaffordable, the various boards and associations are urging the parties to commit to revising the mortgage stress test and adapting it to regional differences and changing economic trends.
The stress test, made tougher in 2018 to cool the overheated real estate market, requires would-be borrowers to demonstrate they could still make payments if faced with higher interest rates or less income.
Realtors also want to see the $750 First-Time Home Buyers Tax Credit replaced with a $2,500 non-refundable tax credit for first-time buyers and are seeking the re-introduction of 30-year amortizations.
Meanwhile, the head of Canada Mortgage and Housing has urged Ottawa to keep the rules as they are in order to protect the economy from tragic consequences as debt levels rise.