BANK OF CANADA SAYS NEW RULES ARE IMPROVING NEW MORTGAGE QUALITY

Nov 14, 2018

By Michael Kramer

Share on

Newly released data from the Bank of Canada shows new mortgage rules and higher interest rates – are improving the quality of new mortgages.

The top bank’s analysis shows that tougher qualification tests have reduced the share of new high-leverage, insured loans to six per cent in the second quarter of this year –     from 20 per cent in late 2016.

And the share of new uninsured mortgages has fallen to 14 per cent – compared with 20 per cent a year earlier.

Senior bank deputy governor Carolyn Wilkins says Canadian household debt remains very high – but the better quality of mortgages will put the economy on a more-solid footing – to withstand any future economic shocks.

Join Our Fan Club
Coverage Area
Downtown Toronto
96.7FM
Toronto HD
96.3 HD-2
Kingston to Windsor, Parry Sound to Pittsburgh
AM740
ZoomerRadio Logo

Recently Played: