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in si de ha lto n. co m O ak vi lle B ea ve r | T hu rs da y, Ju ne 20 ,2 01 9 | 6 1200 Speers Rd., Unit 12, Oakville, Ont. L6L 2X4 (905) 845 - 1408 | Fax (905) 845 - 5931 | ricky@rickywong.ca Ricky Wong CPA, CA, MBA, B. Eng Ricky WongRicky Wong DIAMONDDIDIDIDIDIAMAMAMAMAMONONONDIAMONDONDIAMONDONDIAMONDONDIAMONDONDIAMONDONDIAMONDONONONONONDDD DIAMONDDIDIDIDIDIAMAMAMAMAMONONONONONONONDDD Voted Best Accountant by Oakville Beaver Readers for 11 Consecutive Years For more information please check our website www.rickywong.ca •Accounting •Auditing • Taxation 380 Sherin Drive, Oakville, Ontario 905.847.1413 www.vistamere.ca Whether you're fully independent or need some assistance, Vistamere retirement living offers continued care and peace of mind for you and your family. Retirement Living At ItsBest Discover Your choices Call today for yourpersonal tour. We'd love tohave you joinus! • LargePatioSuites •DailyMaid& LaundryServices •WorryFreeLifestyle inaCommunity Setting •3MealsADay &Planned Activities The buying and selling of houses in Canada is in the middle of a political tug of war between the govern- ment and industry partici- pants.Over the past decade the residential real estate market was red hot. Partic- ularly in Toronto and Van- couver.The main reason was affordability. With his- torically low interest rates, more people were able to qualify for significant mortgage loans.The extra demand for homes due to low interest rates caused house prices to escalate. This was a concern for the government for two rea- sons.It wanted to slow down the quickly escalat- ing real estate prices to avoid creating an over- priced residential real es- tate market. Overpriced markets tend to come crashing down and that would have a negative rip- ple effect on the Canadian economy.The other reason was to protect individuals from getting in over their heads financially. If inter- est rates increased and homeowners had to renew their expiring mortgages, would they be able to pay more every month in mort- gage payments caused by higher interest rates?The real estate stress test was successful. According to the Canadian Real Estate Association, home sales declined 11 per cent in 2018, and the Toronto Real Es- tate Board recorded a 2018 residential sales decline of 16 per cent.House prices have stabilized and in some markets declined.Evan Siddall, president and CEO of Canada Mortgage Hous- ing Corporation, recently defended the government's action to attempt to slow down the real estate mar- ket. In a letter to the House of Commons finance com- mittee, now posted on the CMHC website, he said the "potential consequences of our debt-fueled real estate boom in Canada are seri- ous" and the mortgage stress test "is doing what it is supposed to do."Civil as- sociations representing groups involved with the real estate market have protested against the clampdown on prospective home buyers. Those groups represent home builders, real estate agents and mortgage brokers- .From a financial planning perspective, individuals who have too much expo- sure to real estate can suf- fer significant financial setbacks. I strongly sup- port the government ac- tion. Peter Watson, of Peter Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contact- ed through www.peterwat- soninvestments.com CMHC DEFENDS MORTGAGE STRESS TEST OPINION I STRONGLY SUPPORT THIS GOVERNMENT ACTION, WRITES PETER WATSON PETER WATSON Column SIGN UP FOR OUR WEEKLY NEWSLETTER AT INSIDEHALTON.COM