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“There’s enough here (in the new rules) to slow the markets — especially foreign demand in those markets,” Guatieri said. “But what these measures will also do is reduce the risk of a correction down the road should prices in those two cities continue to rise at double-digit rates.”

Both the federal government and the Bank of Canada have been attempting to cool the housing market in the post-recession environment of low-for-longer interest rates. Ottawa has attempted to rein in the market through progressively tighter regulations on the length and levels of mortgages, particularly in Vancouver and Toronto where prices of homes have been on a steady upward trajectory — even as interest rates have remained at near-historic lows.

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Stephen Poloz, the central bank governor, has been at pains to remind Canadians that rates will eventually begin to go up and borrowers need to stay within their ability to manage mortgages at higher rates.

Changes announced Monday, which come into effect Oct. 17, will “certainly add some prudence” to the housing markets … by beefing up the so-called mortgage stress qualifications,” Guatieri said.

“It clearly will price-out buyers in some high-priced regions in Canada — obviously Toronto and Vancouver. So, that will go some ways, I believe, to cooling the markets in those two regions.”

Even before the measures were announced those two markets were showing signs of slowing down.

Phil Soper, chief executive at Royal LePage, said “we are already starting to see the early stages of a cyclical slowing of the market in both cities — albeit more pronounced in Vancouver.”