Finance minister talks reining in housing market

by Justin da Rosa15 Dec 2014
Finance Minister Joe Oliver, who is currently in meetings with his provincial counterpart, has said the government may take steps to rein in an overvalued housing market.
“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 of his.
"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 in late March. "I will continue to monitor the market closely."
The Finance Minister remains mum about what measures would be considered.
“Our longer-term objective is to reduce the government’s exposure to the mortgage market and we keep that objective in mind going forward,” he told CP.
The Bank of Canada recently took a stance on the state of housing prices, saying it believes the Canadian housing market is 10 to 30 per cent overvalued. However, the Governor of the Bank of Canada, Stephen Poloz, has also said he does not fear a housing crash.
“The risk comes when some catalyst sets off the vulnerability,” Poloz said on Thursday. “In this case it would be, let’s say, a rise in unemployment, a significant one, where it makes people have difficulty paying for their mortgage, or a rapid rise in mortgage rates, neither of which we’re expecting.”


  • by Duh? 12/15/2014 1:14:42 PM

    If they don't know what they will do for a problem that probably won't happen because they don't expect a rapid rise in rates or rising unemployment - what is the point of this article?
    I this what you call "filler" in the modern world of useless information?

  • by 12/15/2014 1:21:35 PM

    I was just thinking the same thoughts! Let's just scare the heck out of everybody right now! LOL

  • by Dan S 12/15/2014 1:34:35 PM

    In Ontario, only The GTA and surrounding area has over-inflated Real Estate caused from the Government's immigration policies. The people in the rest of Ontario have a different sentiment. It would be more fair, if provincial and federal politicians would quit making political and economic policies, based on what is going on in that area. This current Liberal government should be referred to as "The GTA Gang!!!


Is a Toronto foreign sales tax a good idea?