20 Observations on the New Mortgage Rules

20 Observations on the New Mortgage Rules

Jim-Flaherty-Mortgage-RulesThree months ago, Finance Minister Jim Flaherty told banks to tighten lending on their own. Now he’s doing it for them.

The Department of Finance (DoF), in concert with OSFI, released a buffet of mortgage rules Thursday. By our count, there are eight salient changes that, when combined, will have a measurable impact on housing.

See: New Mortgage Rules and OSFI Guidelines [B-20] for rule summaries.

The motivation for these moves is captured in Flaherty’s press briefing comment: “I have been listening to the market, and quite frankly I don’t like what I hear.” Loose translation: The debt and housing train is in danger of running off the rails.

The DoF’s solutions to this problem will influence our market for years to come. Below are 20 musings on the new mortgage rules, sprinkled with a few tips and predictions:

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