Canadian debt levels rising with home prices, but mortgage rules helping to manage risks: BoC deputy
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.
Full story at the Financial Post: http://business.financialpost.com/personal-finance/mortgages-real-estate/canadian-debt-levels-rising-with-home-prices-but-mortgage-rules-helping-to-manage-risks-boc-deputy
