The impact of macroprudential housing finance tools in Canada : 2005 - 10

by Jason Allen, Timothy Grieder, Brian Peterson and Tom Roberts

This paper combines loan-level administrative data with household-level survey data to analyze the impact of recent macroprudential policy changes in Canada using a microsimulation model of mortgage demand of first-time homebuyers. Policies targeting the loan-to-value ratio are found to have a larger impact than policies targeting the debtservice ratio, such as amortization. This is because there are more wealth-constrained borrowers than income-constrained borrowers entering the housing market.

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Year of publication:	August 2016
Authors:	Allen, Jason ; Grieder, Timothy ; Peterson, Brian ; Roberts, Tom
Publisher:	[Ottawa] : Bank of Canada
Subject:	Financial system regulation and policies \| Kanada \| Canada \| Immobilienfinanzierung \| Real estate finance \| Finanzmarktaufsicht \| Financial supervision \| Bankenregulierung \| Bank regulation \| Finanzsektor \| Financial sector \| Wirkungsanalyse \| Impact assessment \| Regulierung \| Regulation \| Hypothek \| Mortgage