Statement by the Deputy Prime Minister and Minister of Finance on the Canadian housing market
December 17, 2021 - Ottawa, Ontario - Department of Finance Canada
Earlier today, the Office of the Superintendent of Financial Institutions (OSFI) announced that it is maintaining the minimum qualifying rate for uninsured mortgages that came into effect on June 1, 2021. Following this announcement, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, issued the following statement:
“Our government is keenly aware that rising housing prices are a real concern, especially for middle-class Canadians hoping to buy their first home. Addressing housing affordability is a priority.
“Like the Superintendent of Financial Institutions, the federal government is maintaining the minimum qualifying rate for insured mortgages that came into effect in June 2021. It remains as the greater of the borrower’s mortgage contract rate plus a buffer of 2 per cent, or a floor of 5.25 per cent.
“Maintaining the current minimum qualifying rate will ensure prudent underwriting standards for insured mortgages. We will continue to monitor the housing market and review the minimum qualifying rate, in order to adjust it as warranted.
“Our government is working with partners across Canada to increase the supply of affordable housing, end chronic homelessness, and deliver solutions to ensure every Canadian has a place to call home. Our work is ongoing and we will take further action in the upcoming budget.”
- On May 20, 2021, the Office of the Superintendent of Financial Institutions announced that it was launching a new process to review and communicate the qualifying rate at a minimum annually, every December. This timing is set well in advance of the high-volume spring housing market.
- Today marks the first, regular December review led by OSFI.
- Statement by the Deputy Prime Minister and Minister of Finance on the Canadian housing market (May 20, 2021)
Media may contact:
Office of the Deputy Prime Minister and Minister of Finance
Department of Finance Canada
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