The Globe and Mail reports in its Saturday, Oct. 15, edition that on Friday, the Canadian Real Estate Association warned that first-time homebuyers will suffer as a result of new mortgage rules. The Globe's Tim Kiladze writes that Canada's big banks largely approve of the crackdown.
The banks have been timid to say much publicly, for fear of ticking off the federal government. They are also cautious of public perception, and do not want to be seen as overly influencing Ottawa's policy. However, behind closed doors, they are now showing much more support for housing market reforms than they let on.
Executives at the highest levels of these institutions have made it clear there have been changes of heart. What used to be blatant willingness to win business by offering lower mortgage rates has been supplanted by doing what is best for the market's long-term health.
Most of these executives strongly support three policy changes Ottawa announced this month, which include cracking down on foreigners who sidestep taxes on housing gains, limiting the federal insurance available for their mortgage portfolios and forcing all Canadians to qualify for mortgages assuming much higher rates.
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