Bill Morneau wrote a letter to the finance committee in which he says that the adjustments to the mortgage rules have “had the intended effect” and that "A decline in the share of new insured loans issued to highly-indebted borrowers suggests that the quality of credit is improving in the high-ratio mortgage market.”
This, he says, suggests that Canadians are taking on mortgages that they can afford.
The Globe and Mail reported that Mr Morneau does not believe that further intervention to increase homeownership would be appropriate as it would likely mean a rise in house prices with little or no impact on affordability.
More market update:
The federal finance minister says that high-risk borrowing has been weakened by the mortgage regulation measures introduced in October.