The Liberal government’s new, tighter mortgage rules were meant to help keep the housing market from overheating, but National Bank says the new rules are doing the opposite, at least for now.
Economist Marc Pinsonneault says the new rules — which require a higher down payment on mortgages above $500,000 — account for some of the furious housing activity seen in Toronto and Vancouver, and will probably continue to drive activity higher in the coming months.
Vancouver has “the tightest home resale market in 12 years,” National Bank said Monday in its latest report on the Teranet house price index. Home sales are far outstripping new listings in that market.
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