On Tuesday, our Conservative Government announced new measures for Canada’s housing market to help protect our economic recovery.

 

Although there is no clear evidence of a housing bubble in Canada, our Conservative Government is looking ahead and taking prudent and cautious steps to help prevent one.

 

To help Canadians prepare for the possibility of future interest rate increases, our Government is taking action such as requiring that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. We are lowering the maximum withdrawal amount when refinancing mortgages and are now requiring a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner occupied properties. 

 

Today’s announcement will help to prevent Canadian households from getting overextended, and will help to avoid situations where lenders facilitate the problem.

 

Our Government understands the importance of the mortgage and housing sector to the economy and the country. That’s why we took action in 2008 to limit the kinds of excesses that plagued other countries around the world.

 

As recognized by the International Monetary Fund as well as others, Canada’s regulation of our financial services industry ensured that we were in a much stronger position to weather the economic downturn.

 

Through today’s announcement, our Conservative Government is looking ahead to the future and taking action now, before there is a problem, to protect Canada’s fragile economic recovery.