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“The expanded stress-test for homebuyers who need mortgage default insurance took effect in the middle of October,” noted Cliff Iverson, president of CREA, referring to the changes, which affect all loans backed by the federal government. “More time will need to pass before its effect on housing markets can be gauged. The extent to which they will push first-time homebuyers to the sidelines may vary among housing markets.”

The government in the country’s most populous province jumped into the fray Monday with a policy change aimed at what is seen as the most vulnerable part of the housing market. Ontario doubled the tax rebate on land property transfers from $2,000 to $4,000 for first-time buyers, while hiking rates on homes that sell for more than $2 million.

Gregory Klump, chief economist for CREA, said the early evidence suggests the impact of tighter mortgage regulations on sales activity has been mixed.

“The federal government will no doubt want to monitor the effect of new mortgage regulations on the many varied housing markets across Canada and on the economy, particularly given the recent rise in uncertainty about economic growth prospects following the U.S. presidential election,” Klump said.

Already there are signs that political uncertainty, along with tighter rules, are sending rates higher. Earlier this month Toronto-Dominion Bank raised its prime rate for variable-rate mortgage customers from 2.7 per cent to 2.85 per cent.