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

Columbia River Treaty: ‘It is going to get tough’

B.C. negotiator tells Nelson meeting that talks are cordial, so far

Rockies joust the Knights

Two back-to-back home games this weekend for the Rockies

Fowler’s show films in the Flats

YouTube star Zach Fowler films ‘30 Day Survival Challenge’ YouTube series in Canal Flats

Valley YouTuber sets sights on survival show stardom

Greg Ovens releases 30 Day Survival Challenge videos on his new YouTube channel

Minor Hockey Minute

Silver medals for Rockies’ Senior Girls and Atom Blue teams

VIDEO: ‘Climate emergency’ is Oxford’s 2019 Word of the Year

Other words on the shortlist included ‘extinction,’ ‘climate denial’ and ‘eco-anxiety’

Three cops investigated in connection to ex-Vancouver detective’s sexual misconduct

Fisher was convicted in 2018 after pleading guilty to kissing two young women who were witnesses in a criminal case

Violence response procedures updated for B.C. schools, police

ERASE program expands to target gangs, bullying of students

A pawsitive ending: Missing puppy found after nine-day search in Chilliwack

Pit bull Frankie ran from dog sitter booked through app

Federal laws at heart of West’s anger up for debate, as Liberals begin outreach

Vancouver mayor to Trudeau’s western critics: ‘Get over yourselves’

Snowboard pioneer Jake Burton Carpenter dies at 65

He was diagnosed with testicular cancer in 2011

Teen developed ‘popcorn lung’ due to vaping: Ontario doctors

Boy went from being in perfect health to being on life support after just five months

B.C. judge tosses ‘N’ driver’s claim he was just using phone to decline his mom’s call

Distracted driving laws are more strict for Class 7, or Novice drivers, the judge noted

Woman calls 911 to say she was late for train, asks Ontario police for ‘emergency ride’

Peel Regional Police received more than 180,000 improper calls so far this year

Most Read