Article content continued

The federal minister acknowledged the new measure will affect fewer than 10,000 home purchasers, or one per cent of the total market.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or

“We see that the market in general is stable. Canadians should feel comfortable with their home purchases and we recognize that our job is to ensure that remains the case,” he said.

“We’re looking at some housing market risks, some pockets of risks, that are important . . . in Toronto and Vancouver. This measure carefully targets that to make ensure that the homeowners in those markets are protected.”

Observers said the move, which comes as the federal government doubled the minimum down payment on houses over $500,000, is also intended to cool Canada’s hot housing market.

Continue reading.

[/np_storybar]

Observers said the move, which comes as the federal government doubled the minimum down payment on houses over $500,000, is also intended to cool Canada’s hot housing market.

As well, the minister said “we consider the fact that the Alberta situation is challenging. We want to make sure we’re doing things that don’t negatively impact that market . . . and only impact those homes over $500,000 up to a million (dollars).”

Meanwhile, homes valued at $1 million or more will still be required to provide a down payment of 20 per cent.

While one per cent of national home sales are above $500,000, the average in Vancouver is six per cent and four per cent in Toronto.

About 35 per cent of new Canadian home purchases each year are insured, through CMHC or one of the two private insurers in the market.