The Federal Finance Minister recently created a problem while attempting to solve a problem that didn't exist, namely speculation in Toronto Condos.

One move was to require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner occupied properties. The reality is that you do not need mortgage insurance with 20 per cent down.

The Finance Minister went after investors who supply a large percentage of the rental housing, especially in downtown Toronto.

Many of these investors are key in to getting Toronto Condominium projects off the ground in the first place and it is these same investors who put their Condo suites on the rental market

According to the Canadian Home builders association, the new rules will have little or no impact on Condominium speculation but will curtail investment in  Toronto rental housing by small private investors.