A recent survey shows that many economists expect the government to implement new mortgage rules this year.
According to Reuter’s latest poll, 10 of 14 economists and strategists suggest that Ottawa may be really considering the variant of tightening mortgage rules during the next 12 months. In addition to it, they expect it to happen quite soon – this spring.
Such thoughts may affect their home prices forecast, as the respondents predict just a slight 0.1% increase for this year. The same results are expected in 2013. Last year average Canadian real estate growth was around 1%.
The survey results caused certain worries about the federal government planning to reduce the maximum amortization for insured mortgages from today’s 30 years down to 25 years.
Economists surveyed by Reuters predict more formal rule changes. Meanwhile, industry analysts expect the reduction of the amortization cap and/or an increase of mortgage insurance costs.
In the same time, Canadian Association of Accredited Mortgage Professionals (CAAMP), considered to be the main voice of the Mortgage Brokers community, is now lobbying against such decisions. CAAMP’s CEO was in Ottawa twice this month trying to persuade the Finance committee members personally.
Our presumption on new possibility of the mortgage rules tightening is very simple: if Canadian housing market will continue to boil and prices will continue to rise at the current pace – government will intervene for the 4th time in the last 3 years and implement new mortgage rules this spring.
