The Canadian Real Estate Association this week [4 Jan 2010] asked its 100,000 members to send a form letter to the Minister of Finance, Jim Flaherty, urging him to keep mortgage lending loose. The realtors are pretending to take the high ground on an issue where their motivation is clearly for the health of their own business. It would be far more honest and acceptable for them to simply come out and say that they are worried about themselves, but they hide behind a faux concern for ‘Canadian families’ and ‘homebuyers, homeowners and the economy’. They aren’t kidding anybody, including, one hopes, the Minister of Finance.
Loose lending has fueled the RE Bubble, and has made housing less, not more, affordable. The longer that cheap money is available, the larger the debt burden will become before the inevitable bust. Loose lending is profoundly detrimental to the health of our society.
The CREA appeal has been thoroughly discussed on other RE blogs but, for the sake of the historical chronology of the bubble, we headline this noteworthy event here, and post images of the CREA ‘Call to Action’ to their realtors, and of the CREA recommended form letter to the Minister.