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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

WEATHER: Rain makes a comeback in weekend forecast for Langley

Periods of rain are expected to begin Friday evening

Exploding enrolment prompts opening of second TWU campus in Richmond

Langley’s faith-based Trinity Western University opens a second campus in Richmond

Woman in Fraser Health region confirmed as sixth COVID-19 case in B.C.

Woman remains in isolation as Fraser Health officials investigate

Fraser Valley imports, exports slowed down by Aldergrove border hours: Langley chamber

Greater Langley Chamber of Commerce lends a helping local businesses thrive in new markets

Adopt-A-Thon seeks homes for Langley shelter cats

A local rescue organization is hosting its first big adoption event of 2020

Fashion Fridays: The 8 best quality online stores! Shop the ultimate sales

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

PHOTOS: 2020 BC Winter Games kick off in Fort St. John

More than 1,000 of B.C.’s best athletes will be competing over the next three days

Meet the Wet’suwet’en who want the Coastal GasLink pipeline

Supporters of the pipeline are upset only one side is being heard nationwide

‘Usain Bolt he was not’: B.C. gang police seize drugs, cash after foot chase

‘The man took off running when he saw our officers approaching,’ CFSEU BC says

Suspect at large after stealing seaplane before crashing into another in Vancouver

Police responded to the incident at 3:30 a.m. on Friday at Vancouver Harbour

Canadians released from coronavirus-ridden cruise ship in Japan fly home

Those who were cleared to travel are to be screened again at Canadian Forces Base Trenton

Trudeau promises update on blockades as Wet’suwet’en chiefs meet Mohawk supporters

B.C. hereditary chiefs are thanking the Mohawks for supporting them in opposition to Coastal GasLink

Woman missing in Metro Vancouver

Police seek public’s help locating Atefeh Jadidian, last seen in Maple Ridge

Petition seeks to remove B.C. police department from case of murdered 24-year-old real estate agent

American woman starts online petition in hopes of helping Buziak family

Most Read