Canada: Housing Market shows sign of slowing in the light of new Mortgage rules

Following the introduction of tighter mortgage stress-testing criteria by the OSFI effective January 1st, Canada’s housing markets demonstrated its first signs of cooling in January.

A report by the Canada Real Estate Association (CREA) outlined that there were 39,609 seasonally-adjusted residential sales in January, the lowest monthly level for three years.

This represents a 14.5% drop since December, which saw the highest monthly level for over 60 years as buyers brought forward their purchases in anticipation of the tougher mortgage rules.

According to Andrew Peck, the President of the CREA, “The piling on of yet more mortgage rule changes that took effect starting New Year’s Day has created homebuyer uncertainty and confusion”.

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