Mr. Speaker, I would like to thank you for giving me the opportunity to answer that question.
The government fully appreciates the challenges faced by middle-class Canadians and those who are working so hard to join the middle class. This includes middle-class families' concerns over reduced housing affordability in some regions and taking on high levels of debt, reducing the likelihood that they will be able to afford their properties over the long term if economic circumstances were to change. Those who already own their homes want to know that the market is stable and that the most important investment they have made in their life is safe. This why our government has been focused on housing issues since coming into office. We have taken a series of carefully targeted measures to ensure stability and to promote affordability.
Effective since February 15, 2016, the minimum down payment of a new insured mortgage increased from 5% to 10% for the portion of the house price above $500,000. In October, the government made changes to the mortgage insurance rules and tax measures to help ensure that new homebuyers are more resilient and that the principal-residence exemption is only claimed in appropriate cases. These measures are focused on addressing the buildup of housing debt across Canada. This includes markets such as Vancouver and Toronto, which have seen significant house price increases, but also other areas of the country where buying activity is more modest but new buyers are highly indebted. These measures will require borrowers and lenders to make adjustments in the short term and are expected to lead to a temporary reduction in housing activity. However, they are important in containing risk to preserve the long-term stability of the housing market.
The government is also committed to doing its part to fully understand the range of factors impacting regional housing markets. This is why in budget 2016 we provided funding to Statistics Canada to develop a methodology for gathering data on purchases of Canadian housing by foreign homebuyers. The finance minister also created the federal, provincial, and municipal working group of officials to review the range of factors affecting regional housing markets.
Finally, the government is engaging on housing affordability to support the needs of our most vulnerable population. In budget 2016, the Government of Canada spent $2.3 billion on affordable housing. It will continue to work closely with the provinces and municipalities on this file. My colleague the Minister of Families, Children and Social Development is currently developing a housing strategy. We have seen in other countries what can happen to the housing market and economy when housing risks and the leverage are not appropriately managed. In these situations, it is often middle-class families who suffer the most.
It will take time before we can fully assess the impact of all of these measures, and the government is closely monitoring housing and mortgage markets across the country. Measures that ensure a sound and stable housing market and financial security for Canadian families are a part of the government's economic plan, which is based on the notion that, when we have an economy that works for the middle class, we have a country that works for everyone. The series of actions the government has taken over the course of the past year demonstrates our commitment to protecting the long-term financial security for Canadians.