Close X
Monday, November 11, 2024
ADVT 
National

Bank Of Canada Deputy Says House Prices Have Increased Debt, But Risks Well Managed

Darpan News Desk The Canadian Press, 25 Aug, 2015 12:19 PM
    OTTAWA — Rising home prices have increased household debt levels, but steps taken by regulators to tighten mortgage lending rules have helped manage the associated risks, according to the Bank of Canada.
     
    In a speech in Kingston, Ont., deputy governor Lawrence Schembri said Tuesday that the strength in the housing market has increased household imbalances.
     
    However, the risks stemming from these vulnerabilities have been well managed, he added.
     
    The government has moved several times in recent years to tighten mortgage lending rules, including reducing the maximum amortization period for insured mortgages as well as making changes to the qualifying rules.
     
    "Recent evidence suggests that these measures have resulted in higher average credit scores, which have improved the quality of mortgage borrowing," Schembri told the Canadian Association for Business Economics.
     
    He added that the trend rate of growth in mortgage credit fell from 14 per cent in 2007-08 to around five per cent in 2013-15.
     
    Home prices have been rising relative to income in Canada and other comparable countries for about 20 years.
     
    The increase has been driven by demographic forces as well as lower interest rates and changes in mortgage financing.
     
    As well, constraints on supply, especially in urban areas, have played a role.
     
    "In Vancouver, bounded on three sides by water with coastal mountains as a backdrop, condo development has dominated housing starts since the early 1990s," Schembri said.
     
    "We are now seeing a similar shift to condos in Montreal and Toronto."

    MORE National ARTICLES

    Punjab Minister Bikram Singh Majitiha Unfurls National Flag Upside Down In Amritsar, 2 Suspended

    Punjab Minister Bikram Singh Majitiha Unfurls National Flag Upside Down In Amritsar, 2 Suspended
    The flag continued to fly upside down even when Majithia delivered his speech and it was hoisted into the right position when function was going to conclude. 

    Punjab Minister Bikram Singh Majitiha Unfurls National Flag Upside Down In Amritsar, 2 Suspended

    4 Die In Five-Vehicle Crash On Highway 16 West Of Jasper, Alberta

    4 Die In Five-Vehicle Crash On Highway 16 West Of Jasper, Alberta
    RCMP say the truck was headed east on Highway 16 on Friday night near the Alberta-B.C. boundary when it collided with several oncoming vehicles

    4 Die In Five-Vehicle Crash On Highway 16 West Of Jasper, Alberta

    Home Lost After Two Wildfires Force Evacuations In B.C.'s Okanagan Valley

    Home Lost After Two Wildfires Force Evacuations In B.C.'s Okanagan Valley
    The property was lost in the massive Testalinden fire about seven kilometres south of Oliver, said Zoe Kirk with the Regional District of Okanagan-Similkameen.

    Home Lost After Two Wildfires Force Evacuations In B.C.'s Okanagan Valley

    Search Underway For Crew Member Who Went Overboard Cruise Ship Off Newfoundland

    Search Underway For Crew Member Who Went Overboard Cruise Ship Off Newfoundland
    Search and rescue officials said the 26-year-old man did not report for duty onboard the Queen Mary 2 early Saturday just after midnight.

    Search Underway For Crew Member Who Went Overboard Cruise Ship Off Newfoundland

    Rapper Drake Breaks Silence On Toronto Nightclub Shooting: I Have Been In A Moral Bind

    Rapper Drake Breaks Silence On Toronto Nightclub Shooting: I Have Been In A Moral Bind
    Drake writes that his "deepest condolences" go out to the families of Ariela Navarro-Fenoy, 26, and Duvel Hibbert, 23, who were killed in the shooting.

    Rapper Drake Breaks Silence On Toronto Nightclub Shooting: I Have Been In A Moral Bind

    What Makes Indians In The UAE Unique?

    What Makes Indians In The UAE Unique?
    The UAE is home to 2.6 million Indian expats, the largest expat community constituting 30 percent of the total population!

    What Makes Indians In The UAE Unique?