Another factor that could make a big difference is the RULES surrounding CMHC insurance. When the government restricted rentals to 20% down, that reduced the prices in some complexes where most of the units are rented. If the government decided (as has been rumoured) to try to cool the housing market by raising the minimum CMHC downpayment to 10%, that would have a huge affect on what people could afford, and would probably lower prices as less people could buy.
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