According to an article in Tuesday’s Financial Post, Finance Minister Jim Flaherty says there is no need for further tightening of mortgage rules in Canada. In his first appearance since the election, Flaherty commented at the Bloomberg’s Canada Economic Summit in Toronto that there has “already been some softening” in the Canadian real estate market, therefore doing away with the need for further intervention.
Here’s an excerpt from the article:
“Unlike the United States and Europe, the Canadian housing market has continued to rise after the financial crisis, leading some observers to caution we could be headed for a bubble.
Mr. Flaherty said he’s already intervened to toughen mortgage rules three times in the last few years and there’s no need for further action as conditions in the market are finally moving in the right direction.”
The past few months have seen the emergence of new problems affecting the global economy, ranging from conflicts in the Middle East and North Africa and the rising issues around U.S. government debt. However Flaherty commented that Canada has managed to weather the ongoing upheaval in the global economy quite well.
Read the full article here.
The most recent mortgage rule changes saw the end of Government insurance backing for Home Equity Lines of Credit, the reduction of the maximum amortization period for a government-insured mortgage from 35 to 30 years and the maximum borrowing limit on refinances was reduced to 85% from 90%.