Government policy is contributing to a falling home-ownership rate and younger Canadians are being impacted the hardest, says a new report from Mortgage Professionals Canada.
It says by the time of the next federal election, 200,000 Canadian families “will have experienced the sharp disappointment of failing the newly implemented (mortgage) stress test, even though they can afford to borrow the amount they need.”
“The homeownership rate in Canada has fallen, as young, middle-class Canadians have found it increasingly difficult to make first-time purchases. Government policies have contributed to the concerns. With the recent further tightening of mortgage rules, ownership challenges have been intensified, and the ownership rate is very likely to fall further,” says Will Dunning, chief economist for the association and author of the report.