Close X
Thursday, November 14, 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 Promises Billions For First Nations Education; Harper Sings TFSA Praises

    OTTAWA — Liberal Leader Leader Justin Trudeau announced his first big-ticket campaign promise today, saying a Liberal government would spend billions to improve First Nations education.

    Trudeau Promises Billions For First Nations Education; Harper Sings TFSA Praises

    Must Love Dogs: Wannabe Police Canine Handlers Must Jump Through Hoops

    Must Love Dogs: Wannabe Police Canine Handlers Must Jump Through Hoops
    It's a familiar motto at the RCMP Police Dog Service Training Centre in central Alberta, the one place in Canada where RCMP police dogs are born and trained.

    Must Love Dogs: Wannabe Police Canine Handlers Must Jump Through Hoops

    Taxpayers Bore Cost Of Inefficient Health Data System That Needs Review: Audit

    Taxpayers Bore Cost Of Inefficient Health Data System That Needs Review: Audit
     British Columbia's auditor general says the province's $115-million public health data system is "riddled with deficiencies" and the technology may already be outdated.

    Taxpayers Bore Cost Of Inefficient Health Data System That Needs Review: Audit

    Stowe, Taos Join Ski Resort Alliance, Offering Pass For 2015-16 Season

    Stowe, Taos Join Ski Resort Alliance, Offering Pass For 2015-16 Season
    The Mountain Collective of ski resorts is expanding, and that could entice skiers and riders to travel farther afield in search of slopes this winter.

    Stowe, Taos Join Ski Resort Alliance, Offering Pass For 2015-16 Season

    Saskatchewan City Under Precautionary Boil-Water Advisory Due To 'Process Error'

    Saskatchewan City Under Precautionary Boil-Water Advisory Due To 'Process Error'
    NORTH BATTLEFORD, Sask. — Residents of a Saskatchewan city are being told to boil their tap water as a precaution because it might be contaminated.

    Saskatchewan City Under Precautionary Boil-Water Advisory Due To 'Process Error'

    Toronto Mayor 'Nowhere Near' Decision On Whether To Bid For 2024 Olympics

    Toronto Mayor 'Nowhere Near' Decision On Whether To Bid For 2024 Olympics
    With just over a month left to enter the race to host the 2024 Summer Olympics, Toronto's mayor says he is "nowhere near" deciding whether the city will throw its hat in the ring.

    Toronto Mayor 'Nowhere Near' Decision On Whether To Bid For 2024 Olympics