A Bank of Canada official called talks of a Canadian housing bubble premature in a speech in Edmonton Monday, adding higher interest rates are not the solution to cooling the current surge in housing demand and prices.
Lenders should start qualifying borrowers at posted rates to minimize risk of a housing bubble, said Mortgage Alliance broker Mark Herman in response to Finance Minister Jim Flaherty's recent suggestion of upping minimum down payments and decreasing amortization periods.
Finance Minister Jim Flaherty may increase the minimum down payment for homebuyers and cut back amortization periods if the housing market continues to heat up, according to CTV News.
At the end of September, the government announced it would extend its $125-billion mortgage fund program to buy mortgages from lenders. Melissa Kim finds out what this means for the industry