The federal government has announced measures intended to stabilize the real estate sector amid concerns that pockets of risk have emerged in some housing markets, particularly those in Toronto and Vancouver.
Finance Minister Bill Morneau says Ottawa will close loopholes surrounding the capital gains tax exemption on the sale of a principal residence.
Morneau says the federal government will also bring in a mortgage rate stress test for all insured borrowers.
The changes come as concerns mount that housing costs in Toronto and Vancouver have become increasingly unaffordable for many Canadians.
A report released last week by Swiss bank UBS said Vancouver is at greatest risk of a housing bubble in the world.