The Impact of Macroprudential Housing Finance Tools in Canada: 2005–10

Jason Allen, Timothy Grieder, Brian Peterson (petb@bankofcanada.ca) and Tom Roberts

Staff Working Papers from Bank of Canada

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 than policies targeting the debt-service ratio, such as amortization. This is because there are more wealth-constrained borrowers than income-constrained borrowers entering the housing market.

Keywords: Financial; system; regulation; and; policies (search for similar items in EconPapers)
JEL-codes: C63 D14 G28 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2016
New Economics Papers: this item is included in nep-ban, nep-cmp and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:bca:bocawp:16-41

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