Aug 25, 2015
By Michael Kramer
As home prices have soared – household debt levels have also increased for new buyers.
But recent measures to tighten mortgage lending rules – are helping to manage the financial risks.
That news came today from deputy Bank of Canada governor Lawrence Schembri.
Canada has moved several times in recent years to tighten mortgage lending rules.
That includes reducing the maximum amortization period for insured mortgages – in addition to making changes to the qualifying rules for prospective buyers.
In a speech in Kingston, Schembri also told the Canadian Association for Business Economics – the growth rate in mortgage credit has fallen – from 14 per cent in 2007-08 – to around five per cent in 2013-to-2015.