Quebec finance minister Nicolas Marceau Monday warned federal finance minister Jim Flaherty that any further tinkering with mortgage rules could hamper the province’s economy.
Speaking at a conference hosted by the Autorité des marchés financiers (AMF), Marceau, the province’s minister of finance and the economy, said that the federal government should exercise caution in deciding whether or not to tighten mortgage rules any more.
Marceau noted that Flaherty recently suggested that he is considering still more measures to contain rising housing prices. However, Marceau said that Quebec’s market could suffer if he does.
“Quebec’s housing market is balanced at this time. Further tightening of mortgage rules could have adverse consequences on the market and on Quebec’s economy,” Marceau said.
He reported that, from January to October, the average price of existing homes has declined by 0.2%, compared to the same period in 2012; and, that the resale market is currently in equilibrium, too.
“These data indicate that Quebec’s residential sector does not need new measures to curb it, unlike other Canadian markets that show signs of overheating, such as Toronto and Vancouver. I suggest that Mr. Flaherty avoid implementing pan-Canadian policies that could negatively affect certain markets, including Quebec,” he concluded.