The impact of macroprudential housing finance tools in canada

Jason Allen, Timothy Grieder, Brian Peterson and Tom Roberts

Journal of Financial Intermediation, 2020, vol. 42, issue C

Abstract: 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 on demand than policies targeting the debt-service ratio, such as amortization. In addition, we show that loan-to-value policies have a larger role to play in reducing default than income-based policies.

Keywords: Macroprudential policy; Household finance; Microsimulation models (search for similar items in EconPapers)
JEL-codes: C63 D14 G28 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (15)

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Working Paper: The impact of macroprudential housing finance tools in Canada (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinin:v:42:y:2020:i:c:s1042957317300529

DOI: 10.1016/j.jfi.2017.08.004

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