These measures relate to mortgage qualifying criteria, which will raise the underlying quality of household indebtedness over time, and to financial institutions’ capital requirements and pricing criteria, which will make them more resilient to future shocks. Accordingly, these policies will help mitigate financial stability risks over time.
When it comes to housing activity and prices, the measures will weigh on demand, especially for more expensive houses. But demographic demand remains robust, job creation and income growth have been strong in the greater Vancouver and Toronto areas, and housing supply constraints continue to bind.