The Globe and Mail - Published
It was expected that higher interest rates would do the rest of the work. But that’s now in question.
Still, Mr. Flaherty does have some options. Those range from the small tweaks to the standards that consumers must meet in order to qualify for mortgage insurance – which is mandatory for buyers whose down-payment is less than 20 per cent – to more severe changes, such as increasing minimum down-payments.
OSFI has also been weighing the possibility of tightening the mortgage underwriting guidelines for banks, something that would have a larger impact on the housing market. The regulator has been exploring the prospect for a while and decided not to take any action in the spring, at a time when the market was still climbing its way out of the slump that ensued after Mr. Flaherty tightened the mortgage insurance rules in the summer of 2012.
OSFI has also been weighing the possibility of tightening the mortgage underwriting guidelines for banks, something that would have a larger impact on the housing market. The regulator has been exploring the prospect for a while and decided not to take any action in the spring, at a time when the market was still climbing its way out of the slump that ensued after Mr. Flaherty tightened the mortgage insurance rules in the summer of 2012.
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