Mortgage Rule Changes Will Help Spark Demand, but Supply Is ‘Core’ Issue: Economist

Mortgage Rule Changes Will Help Spark Demand, but Supply Is ‘Core’ Issue: Economist
A real estate sign is shown in Vaughan, Ont., on Sept. 12, 2024. The Canadian Press/Paige Taylor White
The Canadian Press
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One expert predicts Ottawa’s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.

The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 percent down payment.