Alarm bells may signal tightening mortgages
To tighten or not to tighten — that is the question facing Finance Minister Jim Flaherty when he brings down the budget on March 29.
Flaherty has been ringing the household-debt alarm bells quite often in recent months and many in the banking and mortgage industries believe it is a precursor to another round of tightening mortgage regulations.
It would be the fourth tightening in four years, further slowing what Flaherty has called Canada’s over-heated housing market, which the previous three have already accomplished, putting first-time home buyers, in particular, on the sidelines but also slowing the mid-range move-up market.
With purchasing power curtailed, it’s not a stretch to think recent warnings are aimed at lenders, encouraging them to do the tightening and not leave it to the government.
More government-imposed regulations would be heavy handed, said Ed Clark, TD Bank CEO.Read more Source: Calgary Herald Author: Calgary Herald