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

    Trudeau Says Harper Should Fire Staffers Who Knew Of Duffy Payment Scheme

    TORONTO — Liberal Leader Justin Trudeau says Prime Minister Stephen Harper should fire some of his senior staffers.

    Trudeau Says Harper Should Fire Staffers Who Knew Of Duffy Payment Scheme

    No winning ticket for $12 million jackpot in Friday night's Lotto Max

    No winning ticket for $12 million jackpot in Friday night's Lotto Max
    TORONTO — No winning ticket was sold for the $12 million jackpot in Friday night's Lotto Max draw.

    No winning ticket for $12 million jackpot in Friday night's Lotto Max

    Man, 25, In Critical Condition After Being Found With Stab Wounds In Surrey's Hawthorne Park

    Man, 25, In Critical Condition After Being Found With Stab Wounds In Surrey's Hawthorne Park
    25-year-old man is in critical condition after a stabbing in Surrey.  Poilice say he was found in Hawthorne Park in the city's north end.

    Man, 25, In Critical Condition After Being Found With Stab Wounds In Surrey's Hawthorne Park

    Public Health Warning Issued Over B.C. Shellfish Bacteria That Sickened 67

    Public Health Warning Issued Over B.C. Shellfish Bacteria That Sickened 67
    The Public Health Agency of Canada says 48 cases have been recorded in B.C., and 19 people have become ill in the neighbouring province since June 1.

    Public Health Warning Issued Over B.C. Shellfish Bacteria That Sickened 67

    Federal Court Dismisses Imprisoned Buddhist's Human Rights Complaint

    Federal Court Dismisses Imprisoned Buddhist's Human Rights Complaint
    The man, Kien Tan, was convicted of second-degree murder in February 2011 and incarcerated at Kent Institution in British Columbia.

    Federal Court Dismisses Imprisoned Buddhist's Human Rights Complaint

    Calgary Couple Sinks D'oh Into Replicating Kitchen From 'The Simpsons'

    Calgary Couple Sinks D'oh Into Replicating Kitchen From 'The Simpsons'
    CALGARY — Marcia Andreychuk and Joel Hamilton are living in a Simpson-esque orange, blue and purple dream.

    Calgary Couple Sinks D'oh Into Replicating Kitchen From 'The Simpsons'