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New mortgage rules slam door on cooling housing market

Financial Post
New mortgage rules slam door on cooling housing market - mortgage - property rule - Canada


Existing home sales dropped 1.3% in June from the month before and were down 4.4% from the year before, suggesting that Canada’s housing market was already cooling before Ottawa tightened mortgage rules.



The national average home price in June was $369,339, down 0.8% from the same month last year, Canadian Real Estate Association reported Monday.

“Even before the new mortgage rules kicked in, all signs suggest that the Canadian housing market was already cooling—the new rules will simply pull hard on a closing door,” said Douglas Porter, deputy chief economist at BMO Capital Markets.

The new rules “will chill a market that had already seen 16 of 26 markets post June sales drops. Vancouver is leading the way down, but four Southern Ontario cities also reported double-digit sales declines.”


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