News / analysis
Mortgage red tape What would tighter mortgage rules mean? The latest report from CAAMP contends that the housing and mortgage sectors are important engines for economic growth and any artificial constraints could produce a housing market downturn stats
A new report by CAAMP Chief Economist Will Dunning is bringing that point home. It identifies all the way that the Canadian housing sector is a significant economic driver. Housing and mortgage activities, along, “could account for more than 1.35 million direct and indirect jobs (about eight per cent of total Canadian employment,” writes Dunning. “The housing and mortgage industry has been particularly important to job creation these past five years.” The report estimates that from 2006 to 2011, 18 per cent of all job creation occurred as a direct and indirect result of growth in the housing and mortgage sector. The report also stresses the soundness of that growth.
1.1%
– decrease in mortgage interest cost for November (2011) after falling 1.3% the month before Source: StatsCan
“The Canadian housing economy is safe and stable,” writes Dunning, contrasting it to the U.S. sector. At the peak of the U.S. housing boom, approximately 20 to 25 per cent of all U.S. housing sales were for investment purposes, says the report, but in contrast, “CAAMP estimates that two per cent to three per cent of Canadian home sales nationally are investment properties.” Murphy has taken that message directly to finance committee members. The reception has been largely positive. “We want to make sure key decisionmakers are aware of the importance of these issues,” he said, “and not take any measures that unnecessarily reduce housing activity thereby damaging the economy.”
Employment Impacts of Housing and Mortgage Activity
1.35 million Number of direct and indirect jobs attributed to housing and mortgage activities
18%
Percentage of job creation between 2006 and 2011 as a direct and indirect result of the housing and mortgage sector
$17 billion
Estimated additional economic activity between 2006 and 2011 created by rising home values or 1.2% of total GDP in Canada
Over 600 Million Lent since 1997
80% Member of CAAMP, AMBA, MBABC, BBB.
6.75%
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