Canadian Residential Mortgage Markets: Boring But Effective?

John Kiff

No 2009/130, IMF Working Papers from International Monetary Fund

Abstract: Klyuev (2008) concluded that the Canadian market for housing finance is highly advanced and sophisticated, but financing options were somewhat limited, particularly at terms longer than five years. This paper argues that the paucity of longer-term loans is caused by a five-year maturity cap on government-guaranteed deposit insurance, and a prepayment penalty limit on residential mortgage loans in the Interest Act. That said, the availability and cost of residential loans for prime borrowers are comparable to those in the United States.

Keywords: WP; covered bond; loan; bank; mortgage rate; closed mortgage; rate; Housing; mortgage; regulations; rate lock-in; borrower mortgage accessibility; cost comparison; mortgage market; fixed-rate mortgage; covered bond program; bank lender; securitization rate; loan quality; mortgage insurer; mortgage accessibility; Fixed-Term mortgage rates; Mortgages; Loans; Residential mortgages; Covered bonds; Insurance; Europe (search for similar items in EconPapers)
Pages: 17
Date: 2009-06-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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