People often say that all politics is local. It is much the same for the real estate market. The market is local. It is true that mortgage matters are in federal jurisdiction. There, as in many other areas, there needs to be a way for the federal government to work with provincial or municipal authorities, even in areas of regional disparity.
I don't know if Mr. Cardinal has any other ideas on the subject.
My suggestion would be to keep analyzing the regional repercussions and the decisions to be made before doing anything.