Realtor groups push for eased mortgage rules as federal campaign gets underway

Real Estate Board of Greater Vancouver wants to see balanced lending and regulation

A real estate sign is pictured in Vancouver, B.C., Tuesday, June, 12, 2018. (THE CANADIAN PRESS Jonathan Hayward)

Real estate associations representing nearly three-quarters of the realtors in Canada have called for federal parties to commit to ease mortgage rules as the election campaign gets underway.

Organizations representing realtors and brokers in Toronto, Vancouver, Calgary, Edmonton, Quebec and Nova Scotia say too much regulation makes ownership unaffordable.

With the federal election set for Oct. 21, the boards and associations have urged federal political parties to commit to revise the mortgage stress test and adapt it to regional differences and changing economic trends.

READ MORE: Greater Victoria residents saw their mortgage payments rise almost five per cent last year

The stress test, made more stringent in 2018 to cool an overheated housing market, requires would-be borrowers to show they could still make payments if faced with higher interest rates or less income.

The associations also want the $750 First-Time Home Buyers Tax Credit replaced with a $2,500 non-refundable tax credit for first-time buyers and are seeking reintroduction of 30-year mortgage amortizations.

Industry groups have been calling for eased rules around home buying for some time, while the CEO of the Canada Mortgage and Housing Corp. has urged the federal government to keep the rules in place to protect the economy from tragic consequences as debt levels soar.

CMHC head Evan Siddall urged in a letter to a federal committee in May that it look beyond the “plain self-interest” of groups advocating for eased rules and see the lowering of home prices as helpful for the long-term health of the economy.

READ MORE: Real estate board calls on Ottawa to revisit mortgage stress test

Ashley Smith, president of the Real Estate Board of Greater Vancouver, said in Thursday’s release that her association believes in responsible lending and regulation, but also wants to see a balance.

“The stress test is causing more harm to hopeful home buyers than it needs to. It’s hurting affordability and stifling people’s ability to meet their housing needs.”

John DiMichele, CEO of the Toronto board, also called for more measures to increase supply, including relaxed rules on mid-density buildings, less red tape, and help on transit-oriented development.

“We need concrete results in the Greater Toronto Area to address the lack of supply.”

Matt Honsberger, president of the Nova Scotia Association of Realtors says no two real estate markets are the same and the inflexible stress test as well as other housing policies ”are simply not solutions that will work across our diverse country.”

The Canadian Press

READ MORE: Abbotsford mortgage broker named among top 50 in Canada

Like us on Facebook and follow us on Twitter

Just Posted

Two Nanaimo residents share $5-million lotto prize

Jesse Logan and Teresa Winters Day matched all six numbers in Aug. 21 Lotto 6/49 draw

Nanaimo ferry an hour and a half behind schedule after medical emergency

Queen of Oak Bay was delayed at Departure Bay this afternoon

Nanaimo RCMP chili cook-off raises cash for Tour de Rock

Nanaimo Mounties hold inaugural chili recipe competition to raise cash to fight childhood cancer

East Coast comedian Ron James bringing ‘Full Throttle Tour’ to Nanaimo

James is at work on the first draft of his first book, ‘All Over the Map’

Thieves steal computers and two beers during downtown Nanaimo restaurant break-in

Break-and-enter happened Sept. 3 at Zalathai Thai Restaurant on Victoria Crescent

Nanaimo remembers Terry Fox and runs for his cause

Terry Fox Run was held Sunday at Bowen Park

Nanaimo-Ladysmith candidates try to chart a path to victory

Conservatives, NDP, Liberals set sights on votes needed to unseat Green incumbent

Canucks sign Brock Boeser to three-year, US$17.6-million deal

Young sniper will be in Vancouver Tuesday

B.C. forest industry looks to a high-technology future

Restructuring similar to Europe 15 years ago, executive says

Nanaimo Boat Show full of ideas about how to get out on the water

Show takes place Sept. 19-22 at Waterfront Suites and Marina on Stewart Avenue

It’s game on as new hockey exhibit fills Nanaimo Museum

Canadian Museum of History travelling exhibit on display until November

RCMP conclude investigation into 2017 Elephant Hill wildfire

Files have been turned over to BC Prosecution Service

B.C. wants to be part of global resolution in opioid company bankruptcy claim

Government says settlement must include Canadian claims for devastation created by overdose crisis

Most Read