Research to identify solutions contributing to a stable housing finance system.
Balanced, affordable, and stable housing and mortgage markets help foster conditions that provide Canadians with more affordable market housing options. This leaves more government resources available for populations that are vulnerable and need it most.
This research seeks to find solutions for troublesome areas in the housing finance system. It will:
investigate the drivers and conditions of a balanced housing market to contribute to financial system stability
propose solutions to sources of friction in the housing finance system that increase financing costs for homeowners and housing providers developing rental units
identify and evaluate impacts and opportunities of financial industry transformation
explore new and innovative approaches shaping the housing industry towards achieving social and financial efficiencies
The research aims to analyze housing finance markets vulnerabilities. It also provides evidence and advice to rethink and restructure the current housing finance system.
Our reports examine vulnerabilities arising from:
high levels of household debt
market imbalances and systemic risks
inequity in access to housing and housing finance
climate change and natural disasters
The final outcome of this research will support policy and business decisions in the face of:
existing and emerging vulnerabilities
lack of housing affordability
inequities in access to housing
frictions and lack of incentives in the supply of the right type of housing
Our lens on the housing finance system looks beyond homeownership and includes rental housing. This ensures existing and new housing finance solutions provide access to needed financing to develop, purchase, renovate, or improve affordable rental housing that meets the needs of Canadians.
Mortgage lenders and other housing finance market participants change how they manage risk over time. They adapt their underwriting practices to the economic environment and integrate new technologies.
These changes present opportunities to enhance the mortgage-lending processes and improve access for underserved groups. It can also bring new risks to mitigate.
We’re deepening our understanding of opportunities and potential risks associated with these changes, such as:
the entry of unregulated financial technology (“Fintech”) products and firms
mortgage relief measures such as mortgage payment deferral programs
rapid growth in the multi-unit industry, notably supported by new financing programs
the growth of non-banks, mortgage investment corporations, and private lenders
the use of technologies, such as artificial intelligence, in mortgage lending
The results of this research will:
provide industry with more transparent, complete and timely information to facilitate their business decisions
offer insights to policymakers to identify the potential need for regulatory changes to mitigate risks
remove barriers for innovations that can contribute to improving housing affordability and system stability
The research identifies housing finance solutions that are sustainable over time by the private sector while managing government financial risk exposure. The goal is to increase the contribution of private resources to support the development of affordable housing.
This research involves identifying:
traditional and non-traditional partnerships to increase the supply of affordable housing
innovative and disruptive financial solutions targeting environmental and social outcomes
This research focuses on assessing and promoting new or innovative funding mechanisms. In support of affordable housing, we want to advance:
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