This is their press release statement.
“Based on our research and knowledge of the sector, we see no reason to tighten or restrict access to residential mortgages at this time.”
This following piece one piece may indicate in regards to where the government is looking to restrict borrowing.
4. FURTHER RESTRICTIONS ON ACCESS TO MORTGAGESIf the Fed's do "tighten" mortgage rules a 4th time since 2008, mortgage rules will most likely revert back to where they were in 2003 with 25 year amort. They may also do away with cash back mortgages and free down payment mortgages as well. And that is not factoring in a reinstatement of the price ceiling on mortgages that was in place pre 2003.. If the housing market can not handle another round of tightening to somewhere around 2003 levels (and this is with ultra low rates) then it was a bubble.
Who will be affected?
-Self-employed borrowers who represent a growing portion of our labour force (currently 2.67 million people, or 15% of employment in Canada)
- New Canadians who can afford a down payment but have yet to build credit and employment history
-First time homebuyers who want to enter the homeownership market and build equity
- These are not the people who fall in to a sub-prime loan category like we saw in the US; yet these changes will impact them
-The housing industry is an engine of growth in Canada. If we impede its growth, we will add to unemployment and depress the economy
- If fewer mortgage lenders are able to insure their loans simply because the insurance program has not kept pace with the growth in the mortgage market, then consumers will have less choice when it comes to negotiating a mortgage. Less choice, or less competition, will inevitably lead to higher borrowing costs for the Canadian consumer
- Likewise, if mortgage brokers are restricted in the mortgage products they can offer, consumer choice will be diminished and costs will increase
- This reduced access to capital will make it more difficult for people who can legitimately afford to buy a home
Anybody who says that this housing boom was not because of easy cheap credit needs to watch this bloomberg clip TD Bank's CEO says " Canada's housing boom has been the result of low interest rates and easily available credit."
To me, it is a bubble, built mostly on debt, little on incomes, GDP growth etc. CAAMP, believes household debt is slowing. And they are right, but debt is rising faster than GDP.