Mortgage lending will remain stable despite the pandemic – Bank of Canada

Mortgage lending will remain stable despite the pandemic – Bank of Canada

Mortgage lending will remain stable despite the pandemic – Bank of Canada

Outgoing Bank of Canada Governor Stephen Poloz said that the central bank will continue cultivating a robust lending environment amid the coronavirus pandemic.

In a statement made before the Senate National Finance Committee earlier this week, Poloz said that the bank’s COVID-19 response – specifically, providing needed liquidity and supporting vital financial markets – was instrumental to keeping the economy afloat.

“These programs include our ongoing weekly purchases of at least $5 billion of Government of Canada bonds to support the liquidity and efficiency of this foundational market,” Poloz said. “We have increased our participation in the federal government’s treasury bill auctions. We are also helping ensure the proper functioning of provincial debt markets by buying new provincial money market securities and provincial bonds in the secondary market.”

Central to ensuring the strength of the mortgage market is the BoC’s program of purchasing Canada Mortgage Bonds, up to $500 million per week.

“This is to support the healthy functioning of an important market for mortgage lending to Canadians,” Poloz said. “Together, all these facilities should improve liquidity and funding conditions for lenders, which will help businesses and households access the credit they need. It will also help Canadians benefit more from our monetary stimulus during the recovery period.”