Bank of Canada voices concern over house prices
Financial regulator imposes minimum rate on new uninsured mortgages
The Bank of Canada warned bubbles may be starting to appear in some Canadian housing markets, as mortgage borrowing drove consumer debt up overall.
The central bank published its findings on the same day that the Canadian financial regulator announced a minimum interest rate for new uninsured mortgages. The Office of the Superintendent of Financial Institutions mandated that uninsured mortgages bear the higher of either a minimum rate of 5.25%, or “the mortgage contract rate plus 2%”.
The
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