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New mortgage rules take effect as Ottawa tries to cool Toronto and Vancouver markets

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Canadian Realestate Magazine | 16 Feb 2016, 11:59 AM Agree 0
The Canadian Real Estate Association says sales of existing homes rose by eight per cent last month compared to a year ago, while the national average home price soared 17 per cent
  • | 17 Feb 2016, 12:41 AM Agree 0
    As a former private banker for the two largest institutions soon to become a Realtor my main concern is the lack of understanding the government has on the fundamentals creating the present issue. The issue is not caused by the new home buyers seeking a mortgage for their first family home. The problem resides in the lax regulatory regime for the Asian money coming into the market which has created a massive ripple effect across the GVRD. If anything the new regulation will be counterproductive to the dynamic of a healthy market structure, as the Canadian families looking to buy their first home will now be completely left out by not only the prices but lack of financing. With an increasing number of unregulated institutional real estate funds manipulating the market the risk of a major asset bubble in the real estate is now a reality. I believe the regulation from Real Estate, Banking and Investment should be working together to regulate this market which is behaving more like a hedge fund or private equity without following any of the regulations in place.
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