Ottawa pressures banks
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.”
Contact Laurin Jeffrey for more information – 416−388−1960
Laurin Jeffrey is a Toronto Realtor with Century 21 Regal Realty. He did not
write these articles, he just reproduces them here for people who are
interested in Toronto real estate. He does not work for any builders.