Canadian Residential Mortgage Markets : Boring But Effective?

Author/Editor:

John Kiff

Publication Date:

June 1, 2009

Electronic Access:

Free Full Text (PDF file size is 506 KB).Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Klyuev (2008) concluded that the Canadian market for housing finance is highly advanced and sophisticated, but financing options were somewhat limited, particularly at terms longer than five years. This paper argues that the paucity of longer-term loans is caused by a five-year maturity cap on government-guaranteed deposit insurance, and a prepayment penalty limit on residential mortgage loans in the Interest Act. That said, the availability and cost of residential loans for prime borrowers are comparable to those in the United States.

Series:

Working Paper No. 09/130

Subject:

English

Publication Date:

June 1, 2009

ISBN/ISSN:

9781451872774/1018-5941

Stock No:

WPIEA2009130

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

17

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