{
  "title": "Canadian Residential Mortgage Markets: Boring But Effective?",
  "publication": "IMF Working Papers, June 1, 2009",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/canadian-residential-mortgage-markets-boring-but-effective-23013",
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  "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.",
  "sections": [
    {
      "heading": "Summary and main findings",
      "content": "- 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.\n- This paper argues that the paucity of longer-term loans is caused by:\n  - a five-year maturity cap on government-guaranteed deposit insurance, and\n  - a prepayment penalty limit on residential mortgage loans in the Interest Act.\n- Despite these constraints, the availability and cost of residential loans for prime borrowers are comparable to those in the United States."
    },
    {
      "heading": "Analysis of constraints and mechanisms",
      "content": "- Five-year maturity cap on government-guaranteed deposit insurance is identified as a causal factor for limited longer-term mortgage offerings.\n- Prepayment penalty limit in the Interest Act is identified as a causal factor for limited longer-term mortgage offerings."
    },
    {
      "heading": "Comparative assessment",
      "content": "- Availability and cost of residential loans for prime borrowers in Canada are comparable to those in the United States."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Banking, Covered bonds, Financial institutions, Insurance, Loans, Mortgages, Residential mortgages\n- Keywords: bank, bank lender, borrower mortgage accessibility, closed mortgage, cost comparison, covered bond, covered bond program, Covered bonds, Europe, fixed-rate mortgage, Fixed-Term mortgage rates, Housing, Insurance, loan, loan quality, Loans, mortgage, mortgage accessibility, mortgage insurer, mortgage market, mortgage rate, Mortgages, rate, rate lock-in, regulations, Residential mortgages, securitization rate, WP\n\n---\n\n Content in this bundle\n\n- 1. Non-Interest Rate Mortgage Cost Comparisona\n  - 1. Non-Interest Rate Mortgage Cost Comparisona (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1. Non-Interest Rate Mortgage Cost Comparisona (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/canadian-residential-mortgage-markets-boring-but-effective-23013"
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    "[Markdown version](/en/publications/wp/issues/2016/12/31/canadian-residential-mortgage-markets-boring-but-effective-23013/index.md)",
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    "Authors: John Kiff",
    "Published: June 1, 2009",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451872774.001",
    "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:",
    "Despite these constraints, the availability and cost of residential loans for prime borrowers are comparable to those in the United States.",
    "Five-year maturity cap on government-guaranteed deposit insurance is identified as a causal factor for limited longer-term mortgage offerings.",
    "Prepayment penalty limit in the Interest Act is identified as a causal factor for limited longer-term mortgage offerings.",
    "Availability and cost of residential loans for prime borrowers in Canada are comparable to those in the United States.",
    "Subject: Banking, Covered bonds, Financial institutions, Insurance, Loans, Mortgages, Residential mortgages",
    "Keywords: bank, bank lender, borrower mortgage accessibility, closed mortgage, cost comparison, covered bond, covered bond program, Covered bonds, Europe, fixed-rate mortgage, Fixed-Term mortgage rates, Housing, Insurance, loan, loan quality, Loans, mortgage, mortgage accessibility, mortgage insurer, mortgage market, mortgage rate, Mortgages, rate, rate lock-in, regulations, Residential mortgages, securitization rate, WP",
    "**1. Non-Interest Rate Mortgage Cost Comparisona**"
  ],
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      "title": "1. Non-Interest Rate Mortgage Cost Comparisona",
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