Canadian stocks down as government tightens housing rules

Canadian stocks down as government tightens housing rules

Toronto, Oct 4 (IANS) Canada’s main stock market opened the week with a slight loss on Monday as the federal government announced major housing regulations.

The Toronto Stock Exchange’s benchmark Standard & Poor’s/TSX Composite Index dropped 36.82 points, or 0.25 per cent, to close at 14,689.04 points, Xinhua news agency reported.

Finance Minister Bill Morneau was here on Monday to announce new measures on the housing market in response to the surging prices in Vancouver and Toronto.

Starting October 17, a stress test used for mortgages with less than a 20 per cent down payment will apply to all new mortgages, making it more difficult to receive one.

“I want to make sure that we’re proactive in assessing and addressing the factors that could lead to excess risk,” Morneau said to justify the new policies.

The Liberal government also announced the removal of a loophole that allowed non-residents to receive a tax exemption when selling a home.

The Canadian dollar ticked up 0.009 to close the day at 0.7628 dollars, compared to Friday’s closing rate of 0.7619 dollars.

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