The goal of this paper is to assess the effectiveness of the policy measures taken by Canadian authorities to address the housing boom. We find that the the last three rounds of macroprudential policies implemented since 2010 were associated with lower mortgage credit growth and house price growth. The international experience suggests thatain addition to tighter loan-to-value limits and shorter amortization periodsalower caps on the debt-to-income ratio and higher risk weights could be effective if the housing boom were to reignite. Over the medium term, the authorities could consider structural measures to further improve the soundness of housing finance.To date, only a couple of provinces (including Quebec) have adopted mortgage lending guidelines similar to OSFIa#39;s. ... 26 Secured personal lines of credit, which are mostly backed by houses (i.e. home-equity lines of credit), have risen sharply anbsp;...
|Title||:||With Great Power Comes Great Responsibility: Macroprudential Tools at Work in Canada|
|Author||:||Mr. Ivo Krznar, James Morsink|
|Publisher||:||International Monetary Fund - 2014-05-12|