To this end, Canada has developed a number of what we call “macroprudential policies.” These measures include new rules for mortgage borrowing, the so-called B-20 guideline, for example, which was implemented by the Office of the Superintendent of Financial Institutions.
The aim of these measures has been to reduce the economy’s vulnerability by ensuring borrowers will be able to manage their debt, even when interest rates rise. Let me stress that the goal of these measures has always been to improve the quality of new household debt, not to slow down housing markets.