Mr. Chair, I find it a bit puzzling that the hon. member seems to be favouring an increase in the amortization rate from the current 25 years to 40 years. I am not sure what he thinks the economic consequence of that would be, but it is certainly not the direction we feel it would be prudent to go at this time.
Economic circumstances change, and interest rates change. It is appropriate, therefore, for amortization to change as well when the economic data warrants it.
The IMF has recently noted that the macroprudential measures introduced in Canada over the past few years have been effective in moderating the pace of household debt accumulation, cooling the housing market.
We believe that the initiatives taken by the government since 2008 indicate our concern that the housing sector be well regulated, because it is an important source of strength in the economy. While conditions in the housing market remain firm, housing market activity has moderated, and this partly reflects a series of proactive measures taken by the government.