Real estate activity has been blistering in recent months, fuelled by record low interest rates. The Bank of Canada stated this month it will keep its key lending rate at 0.25 per cent through to mid-year unless its inflation outlook changes.
The flurry of activity has sparked concern about housing bubbles though. The heads of the country's six largest banks have expressed concern over a potential slide in house prices and said they want Ottawa to tighten rules on mortgages, reported The Globe and Mail Saturday.
Finance Minister Jim Flaherty seems to have no near-term plans to tighten mortgage rules.
“Right now, there is no compelling evidence of a housing bubble in Canada,” he told reporters this weekend, though “we're continuing to watch” how the market evolves
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