Cover IMF Working Papers
Buy Book in Print
With Great Power Comes Great Responsibility: Macroprudential Tools at Work in Canada
Author:
Mr. Ivo Krznar
Search for other papers by Mr. Ivo Krznar in
Current site
Google Scholar Close
https://orcid.org/0000-0003-4174-0286
and
Mr. James Morsink
Search for other papers by Mr. James Morsink in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2014: Issue 083
Language:
English
Publication Date:
12 May 2014
DOI:
https://doi.org/10.5089/9781484383445.001
ISBN:
9781484383445
ISSN:
1018-5941
Pages:
38
Keywords:
WP; mortgage; LTV; loan; LTV ratio; housing market; mortgage insurance; macroprudential regulation; risk weight; mortgage credit; housing loan; guarantee cover; Mortgages; Loans; Housing prices; Housing; Credit; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (2.4 MB) Download Epub
The goal of this paper is to assess the effectiveness of the policy measures taken by Canadian authorities to address the housing boom. We find that the the last three rounds of macroprudential policies implemented since 2010 were associated with lower mortgage credit growth and house price growth. The international experience suggests that—in addition to tighter loan-to-value limits and shorter amortization periods—lower caps on the debt-to-income ratio and higher risk weights could be effective if the housing boom were to reignite. Over the medium term, the authorities could consider structural measures to further improve the soundness of housing finance.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund