As you are aware, on October 3rd, Finance Minister Morneau announced a tightening of rules on mortgage insurance.
CHBA is concerned that these new rules go too far, and will harm markets that are already challenged while doing little to address the ongoing supply pressures evident in stronger markets. We are also concerned that these changes will disproportionately affect first-time homebuyers working hard to achieve home ownership.
Going forward we will continue to press the government to rethink their approach and recognize the need for a more constructive approach to addressing lender and insurer risks.
In the short-term, after reviewing the changes carefully, CHBA informed the government that some details included in the October 3rd rule changes were flawed. We have been actively pushing the Department of Finance to address these flaws quickly. Specifically, some elements of the new rules were creating uncertainty for builders, and buyers, with signed deals for homes to be delivered many months or years in the future.
Late on Friday, October 14th, we were informed that a number of our recommended changes were being made, and an updated Technical Backgrounder reflecting these changes is now available on the Department of Finance website.