Realtor groups push for eased mortgage rules as federal campaign gets underway

Real Estate Board of Greater Vancouver wants to see balanced lending and regulation

A real estate sign is pictured in Vancouver, B.C., Tuesday, June, 12, 2018. (THE CANADIAN PRESS Jonathan Hayward)

Real estate associations representing nearly three-quarters of the realtors in Canada have called for federal parties to commit to ease mortgage rules as the election campaign gets underway.

Organizations representing realtors and brokers in Toronto, Vancouver, Calgary, Edmonton, Quebec and Nova Scotia say too much regulation makes ownership unaffordable.

With the federal election set for Oct. 21, the boards and associations have urged federal political parties to commit to revise the mortgage stress test and adapt it to regional differences and changing economic trends.

READ MORE: Greater Victoria residents saw their mortgage payments rise almost five per cent last year

The stress test, made more stringent in 2018 to cool an overheated housing market, requires would-be borrowers to show they could still make payments if faced with higher interest rates or less income.

The associations also want the $750 First-Time Home Buyers Tax Credit replaced with a $2,500 non-refundable tax credit for first-time buyers and are seeking reintroduction of 30-year mortgage amortizations.

Industry groups have been calling for eased rules around home buying for some time, while the CEO of the Canada Mortgage and Housing Corp. has urged the federal government to keep the rules in place to protect the economy from tragic consequences as debt levels soar.

CMHC head Evan Siddall urged in a letter to a federal committee in May that it look beyond the “plain self-interest” of groups advocating for eased rules and see the lowering of home prices as helpful for the long-term health of the economy.

READ MORE: Real estate board calls on Ottawa to revisit mortgage stress test

Ashley Smith, president of the Real Estate Board of Greater Vancouver, said in Thursday’s release that her association believes in responsible lending and regulation, but also wants to see a balance.

“The stress test is causing more harm to hopeful home buyers than it needs to. It’s hurting affordability and stifling people’s ability to meet their housing needs.”

John DiMichele, CEO of the Toronto board, also called for more measures to increase supply, including relaxed rules on mid-density buildings, less red tape, and help on transit-oriented development.

“We need concrete results in the Greater Toronto Area to address the lack of supply.”

Matt Honsberger, president of the Nova Scotia Association of Realtors says no two real estate markets are the same and the inflexible stress test as well as other housing policies ”are simply not solutions that will work across our diverse country.”

The Canadian Press

READ MORE: Abbotsford mortgage broker named among top 50 in Canada

Like us on Facebook and follow us on Twitter

Just Posted

Bronco Beef Producer Day

Nutritionist and veterinarian to speak

School board officials meet with town council

Town council and WCSD work together

Alberta Justice Minister advocates UCP rural crime plan

Expanded property rights, more power to peace officers, demonetizing scrap mental part of UCP plan

A lesson in excellence and success

Mary Kemmis of Black Press Media is the recipient of the 49 Langarans Award

Santa is coming

Tis the season

Bye bye Bei Bei: Giant panda born in U.S. zoo heads to China

Panda heads back to China as part of cooperative breeding program

Notley kicked out of legislature for comment on election watchdog firing bill

When Speaker Nathan Cooper directed Notley to apologize, she refused

Members of little people community applaud change to drop ‘midget’ term

‘It’s not about sensitivity,’ says Allan Redford, the president of the Little People of Canada

Red Deer man facing 13 charges after late night pursuit

Leduc RCMP with assistance from Edmonton Police make arrest

Nothing funny about funny money in Leduc

Leduc RCMP investigate multiple files involving counterfeit currency

‘Midget’ no more: Sweeping division name changes coming to minor hockey in Canada

Alpha-numeric division names will be used for the 2020-2021 season and beyond

Ottawa urges CN and union to continue talks as 3,200 workers go on strike

The rail workers began their strike after failing to reach a deal by a midnight deadline

University of Calgary to slash payroll after post-secondary funding cuts

The government is also cutting all funding for the Infrastructure Maintenance Program

Trans Mountain received $320M in government subsidies in first half 2019: report

The money included $135.8 million in direct subsidies and $183.8 million in indirect subsidies

Most Read