New real estate rules announced by the federal government Monday should dampen home sales across Canada, according to two major banks.
Finance Minister Bill Morneau announced “three complementary measures designed to reinforce the Canadian housing finance system.” Among the changes, the government will close a loophole that allowed foreign buyers who are not residing in Canada to purchase property here, then sell it at a profit — all the while escaping federal tax on whatever money they make in the flip.
The federal government will also bring in a more rigorous mortgage rate stress test for all insured borrowers in an effort to make sure they can sustain interest rate hikes or income losses, Morneau said.
