Tighter mortgage rules have sent buyers looking elsewhere
Investors Group threw coals on the housing fire this week by cutting its three-year variable mortgage rate to a market-share-boosting 1.99%. Federal Finance Minister Joe Oliver is watching. As competitive pressures among lenders push rates down to nearly unheard-of levels, the government keeps trying to cool things off. It is a delicate public/private balancing act. CMHC, the federal mortgage insurer, recently stopped insuring mortgages on second homes and tightened requirement for the self-employed, requiring independent validation of income staements.