Brokers are already speculating about what, if any, measures will be taken to slow the housing market, following Joe Oliver’s statement that he is keeping a close eye on real estate in Canada. But one oft-mentioned ploy should be avoided, according to one industry player.
“I am completely opposed to the privatization of CMHC. There was a crucial 6 month period at the height of the financial crisis when the feds through CMHC were pulling many levers that were critical to Canada's successful navigation of the WFT,” Ron Butler of Butler Mortgage wrote on MortgageBrokerNews.ca. “Why would we give that up? It's a profitable organization that delivers dollars to the federal government every year and it's a fantastic policy making tool.”
Earlier this week, Finance Minister Joe Oliver said the government may take steps to rein in an overvalued housing market. However, he did not mention which measures would be taken.
“In terms of household debt and the real-estate market, this is a subject, of course, we’re monitoring very carefully,” Oliver said, according to the Canadian Press. “So, we’re not going to take any dramatic steps in that regard, but we may take some moderate steps.”
Oliver, who took over for the late Jim Flaherty in March of this year, has said from the outset that monitoring the housing market will be a priority.
"Our government has taken action in the past to reduce consumer indebtedness and the government's exposure to the housing market," Oliver told CTV News on in late March. "I will continue to monitor the market closely."