Tim Hudak says that the rising cost of mortgages and HELOCs following the central bank’s decision, added to tighter regulations for borrowers, cannot be viewed in silos.
“Governments need to be very cautious about the cumulative impact of intervention in the housing market going forward. With both sales and prices slipping recently in the GTA, federal, provincial and municipal governments should think carefully about further measures to reduce demand for housing,” Mr Hudak warned.
He said that policymakers should hit pause on further measures, including a proposed provincial stress test on mortgages alongside federal rules, and take a wait and see approach.
Mr Hudak repeated calls for more focus on supply side issues especially for the ‘missing’ housing types including townhomes, stacked townhomes and duplexes, and speeding up the housing approvals process.
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With recent introductions of mortgage stress tests and the interest rate rise from the BoC, the CEO of the Ontario Real Estate Association is urging caution.