TORONTO – Finance Minister Joe Oliver says Ottawa won’t be making any protective moves in Canada’s housing market.
At a news conference Thursday, Oliver says the government’s long term aim is to gradually reduce taxpayer exposure to the residential real estate market, but there is no specific plan.
Oliver’s predecessor, Jim Flaherty, moved four times to tighten mortgage lending rules in an effort to cool a hot real estate market.
The minister’s comments follow an IMF warning on Wednesday that the housing market and household debt represent key risks to the Canadian economy.
An IMF official estimated Canada’s housing market was over-evaluated by roughly 10 per cent on a national scale, although in some regions those estimates could reach as high as 20 per cent.
The IMF predicted a soft landing for the housing market, but warned Canada could be at risk of a sharp correction if interest rates rose too quickly and the job market suffered a downturn.