Stress tests, foreign buyers and higher rates likely to impact housing market in 2018 – Business – CBC News housing benefit council

Despite those moves, don’t expect the issue to dissipate this year. Statistics canada got money to study foreign buyers in the last budget, and in december, the data agency published its most authoritative numbers on non-resident investment in real estate.

Both cities still have less than five per cent foreign ownership, the numbers show, but market watchers in both cities say that segment is growing, and the issue is worthy of more study before any rash decisions.

In places like toronto and vancouver, CMHC’s chief economist bob dugan told CBC in an interview recently, there’s been very strong growth in houses prices. So people became concerned with trying to get that in check.

Last fall, the country’s top banking regulator OSFI announced changes that will force lenders to stress test mortgage applicants, to make sure they aren’t borrowing too much.Housing benefit council

prospective borrowers will now have their finances mocked up assuming rates are at one of the following two scenarios — whichever is higher:

Canadians who need to refinance and no longer qualify will be forced this way, while some who are looking to purchase and no longer qualify with a regulated lender will choose to go this way, laird said.

That’s far from the universal view, however. While the OSFI rules are significant, economist doug porter at the bank of montreal says he expects the market will largely be able to withstand the impact of new stress tests, just as it has withstood other policy changes.

Canada’s housing market has defied the incessant talk of its imminent demise for years, porter said in a recent report. Which is why this year, he expects the housing market to exceed expectations, even with the new tighter OSFI rules, yet again crushing the bears’ calls, if not their spirits.Housing benefit council

Despite those moves, don’t expect the issue to dissipate this year. Statistics canada got money to study foreign buyers in the last budget, and in december, the data agency published its most authoritative numbers on non-resident investment in real estate.

Both cities still have less than five per cent foreign ownership, the numbers show, but market watchers in both cities say that segment is growing, and the issue is worthy of more study before any rash decisions.

In places like toronto and vancouver, CMHC’s chief economist bob dugan told CBC in an interview recently, there’s been very strong growth in houses prices. So people became concerned with trying to get that in check.

Last fall, the country’s top banking regulator OSFI announced changes that will force lenders to stress test mortgage applicants, to make sure they aren’t borrowing too much.Housing benefit council prospective borrowers will now have their finances mocked up assuming rates are at one of the following two scenarios — whichever is higher:

Canadians who need to refinance and no longer qualify will be forced this way, while some who are looking to purchase and no longer qualify with a regulated lender will choose to go this way, laird said.

That’s far from the universal view, however. While the OSFI rules are significant, economist doug porter at the bank of montreal says he expects the market will largely be able to withstand the impact of new stress tests, just as it has withstood other policy changes.

Canada’s housing market has defied the incessant talk of its imminent demise for years, porter said in a recent report. Which is why this year, he expects the housing market to exceed expectations, even with the new tighter OSFI rules, yet again crushing the bears’ calls, if not their spirits.Housing benefit council