Many Canadians will be forced to scale down their real estate ambitions under new mortgage rules that aim to both keep people from taking on too much debt and rein in speculators, all without knee-capping an industry that has been a major driver of the recovery.
 
The tighter standards come after months of debate about whether a bubble is forming in the housing market, and repeated urging by policymakers for borrowers and lenders to be prepared for higher interest rates.
 
The changes, announced by Finance Minister Jim Flaherty, are designed to keep Canadian consumers from becoming perilously overstretched, and deter speculators from buying houses solely as investments. Observers and industry players said the steps aren’t likely to smother the broad strength in the housing market, where eager buyers often armed with hefty mortgages have bid up prices sharply over much of the past year. The Finance Minister said he was unveiling the measures now, before the need for them becomes more urgent.
 

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