OTTAWA—Canada’s national housing agency says new regulations introduced last fall decreased the size of the country’s insured mortgage market by about 33 per cent year-over-year in the second quarter. The Canada Mortgage and Housing Corp. (CMHC) says in its latest financial report that it provided mortgage loan insurance to 78,607 units in the three-month period ended June 30 compared to 117,463 units during the same period a year ago. CMHC says volumes decreased largely as a result of the new regulations announced by the federal government in the fourth quarter of 2016. Read more:Rising household debt could put long-term growth at risk, CMHC document saysThe mortgage rules require all home buyers with less than a 20 per cent down payment to undergo a stress test to ensure the borrower can still service their loan should interest rates rise, or their personal finances fall. This cut into the purchasing power of some first-time homebuyers.

Source: thestar August 29, 2017 21:11 UTC