BMO warns policymakers could 'swing the hammer' on hot housing
This is what I was eluding to earlier in this thread. I had concerns that the Feds could potentially do something drastic. I am biased of course, but I certainly hope they don't make mortgage qualifying more difficult than it already is.
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“Canadians in some markets are now buying houses, rural properties and cottages like they were buying toilet paper a year ago. Some areas are seeing prices up by a third, not from pre-COVID levels, but from just late last year, with widespread belief that there’s nothing to stop the momentum—after all, we’ve been told repeatedly that interest rates aren’t moving,” Kavcic said.
“One wonders now, assuming that interest rates won’t budge, if and when Ottawa is going to swing the policy hammer, and what that might look like.”
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Kavcic isn’t alone in speculating further action could be in the offing. In a note Wednesday, RBC Senior Economist Robert Hogue said policymakers should put every option on the table to curb rapid home-price appreciation, including “sacred cows” like a capital gains tax on the sale of a principal residence.
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https://www.bnnbloomberg.ca/bmo-warn...in76zmtDj6NxPE