CTV News

Alarm bells are start­ing to ring in Ottawa over how easy it is for some peo­ple to bor­row money.

As The Globe and Mail’s Jeremy Torobin and Grant Robert­son reported, Canada’s Finance Depart­ment has been telling bankers it’s trou­bled by some lend­ing stan­dards and record low mort­gage rates.

The Office of the Super­in­ten­dent of Finan­cial Insti­tu­tions, the bank­ing reg­u­la­tor, is also con­cerned that some peo­ple, who haven’t had to prove how much they earn, are find­ing it too easy to get mort­gages and home lines of credit.

This comes as debt bur­dens among Cana­dian fam­i­lies con­tinue to rise, and after months of warn­ings from the Bank of Canada and the Finance Department.

It also comes as some worry over rich house prices, par­tic­u­larly in Van­cou­ver, though there’s some fret­ting as well about Toronto’s condo mar­ket.

Bank of Mon­treal said in a report this week, though, that it expects no U.S.-style hous­ing mar­ket crash

“In our view, the hous­ing boom will more likely cool than cor­rect, even in condo–dri­ven Toronto – the tar­get of many scary head­lines,” said BMO chief econ­o­mist Sherry Cooper and senior econ­o­mist Sal Guatieri.

“The pos­si­ble excep­tion is pricey Van­cou­ver where the num­ber of unoc­cu­pied newly built con­dos is high owing to the Olympic Vil­lage con­struc­tion in 2010.”

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Con­tact the Jef­frey Team for more infor­ma­tion – 416−388−1960

Lau­rin & Natalie Jef­frey are Toronto Real­tors with Cen­tury 21 Regal Realty.
They did not write these arti­cles, they just repro­duce them here for peo­ple
who are inter­ested in Toronto real estate. They do not work for any builders.
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