Realtor exec: Mortgage rules 'blunt instrument'

“I’m disappointed with this particular set of changes,” Royal LePage CEO Phil Soper said, on the heels of last week’s announcement. “The market is clearly cooling on a national basis, and I’m concerned that what is essentially a Toronto problem is being attacked with a blunt instrument that’s going to hurt the housing market nationwide.”

He’s not alone, with growing numbers of real estate agents now offering the same concerns ahead of July 9 – the day 25-year maximum amortizations replace 30 and maximum loan-to-values on refinances fall to 80 per cent from 85.

Bank economists are now suggesting home prices will be reduced by as much as 5 per cent in the short-term, and not just in new-construction condo markets.

The fact that prices have already started to come down on their own suggests government intervention at this time was simply unnecessary, said Soper.

Signs of slower sales in the last month suggest that prices will fall on their own, he said on Friday.

The national average home price actually fell 0.3 per cent in May compared to the year-ago period, while it dipped 7.5 per cent in Vancouver.

Toronto is largely responsible for elevating that national figure, but the idea of clamping down on all borrowers across the country, just because of the country’s largest market, may be short-sighted, suggested Soper. It may also destabilize the housing market overall, caution some economists.


Looking for more in-depth information and analysis to guide you to investment success? Subscribe to Canadian Real Estate Wealth magazine now!

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release


Do you invest in commercial properties?