Flaherty has no plans to tighten mortgage rules: Globe and Mail
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07/02/2010 8:00:00 AM
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Following a report in Saturday's Globe and Mail that banking officials have called for tighter mortgage rules to stave off a housing collapse, Finance Minister Jim Flaherty told reporters he does not see signs of a housing bubble in Canada.
According to the paper, Flaherty made the comments following the weekend's finance summit. Although he said there were some "signals in the market that are concerning," he added there is no "compelling evidence" of a housing bubble. He did, however, remind the Globe and Mail that he has policy tools available to "take action to counter negative trends."
"I have used some of them before and can use some or all of them again," Flaherty said, making reference to the government's decision to disallow zero-down mortgages and 40-year amortizations in 2008.
The discussion of tightening mortgage rules surfaced in December when Flaherty mentioned the possibility of increasing down payment and amortization periods to cool off the housing market. The Globe said the Department of Finance has canvassed the mortgage industry for ideas on whether tighter mortgage rules are needed.
CAAMP's Jim Murphy told the newspaper that it would have "serious concerns" with ten per cent down payments, while Canadian Mortgage Trends' Robert McLister said the CMHC has already "increased its vigilance" on mortgage insurance approvals.
Latest Comments
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Whiterockgal on
08 Feb 2010 04:54 PM
"canvassed the mortgage industry"??!!!
Might as well canvass a bunch of Realtors... I don't know about the rest of Canada but it doesn't take an economics degree to see there's a bubble in the lower mainland...
Bob on
08 Feb 2010 05:22 PM
Whiterockgal ,You don't set national housing policy by what happens in the Lower Mainland.
Prairies on
08 Feb 2010 05:37 PM
Whiterockgal, if you are concerned about the accuracy of the information maybe take the time to actually read the CAAMP white paper report. It is a well written and takes a broad spectrum look at all of Canada not just one area.
On the Island on
08 Feb 2010 05:51 PM
Why are the banks asking for tighter restrictions? The banks can tighten their own restrictions without having the Feds impose said restrictions. Makes me wonder if the banks are trying to squeeze out other lending institutions i.e. not a chartered bank.
TheRealist on
08 Feb 2010 08:38 PM
This is going to get ugly come July 1st in Ontario... HST, tighter lending, increased listings, increased rates, high unemployment... this is going to be the perfect storm!
TheRealist on
08 Feb 2010 08:40 PM
This is going to get ugly come July 1st in Ontario... HST, tighter lending, increased listings, increased rates, high unemployment... this is going to be the perfect storm!
BROKER on
09 Feb 2010 09:13 AM
well aren't you just the eternal optimist....