Journal of Financial Intermediation Vol. 42 2020
The impact of macroprudential housing finance tools in canada
open access
Abstract
This paper combines loan-level administrative data with household-level survey data to analyze the impact of recent macroprudential policy changes in Canada using a microsimulation model of mortgage demand of first-time homebuyers. Policies targeting the loan-to-value ratio are found to have a larger impact on demand than policies targeting the debt-service ratio, such as amortization. In addition, we show that loan-to-value policies have a larger role to play in reducing default than income-based policies.
- DOI
- 10.1016/j.jfi.2017.08.004
- Volume
- 42
- Pages
- 100761
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref