Personally, I think the new mortgage rules are a good idea.

It’s not that I am worried about massive defaults and a collapse of the Canadian banking system. (Let’s be honest, the Canadian banking system is such a profitable monopoly that even if there were a wave of defaults it would only result in tax savings for the banks and higher service charges for Canadians).

However, I do agree that we should not be encouraging buyers who are highly leveraged, with borderline ability to service the loans.

It’s not so much that they are more likely to default, but these are the folks who are more likely to panic if the market slows down or the media is in need of a new crisis to analyze.

Real estate industry critics should be ashamed of themselves — their only concern is maintaining the speed of their own gravy train.

Will it ‘hurt’ the market? I doubt it.

If it does slow things down, then that only proves the point.

 

Harry Stinson was one of the first Toronto developers to recognize the potential for urban condominiums, to develop residential lofts, and to convert old office and warehouse buildings into residential spaces. His current project is the Stinson School Lofts, an 1894 heritage building in Hamilton, Ont., that he is converting into stylish and affordable lofts.