According to a report by Canoe the Canadian Finance Minister Jim Flaherty has said their are no housing worries in Canada and the government isn’t worried about a subprime housing bubble as we’re seeing in the US.
At an event in Calgary he said:
- “There is no bubble in the Canadian housing sector,”
- “That’s not been our concern. Our concern has been a tendency for longer amortization periods, like 40 years, and for purchasers putting very little money down. We’ve seen nothing in Canada like the U.S. subprime situation.”
He also said that despite the government tightening rules on mortgage lending with their announcement last week to stop insuring 40 year and 0% deposit mortgages, the general health of Canadian banks are very good.
- “Our banks are well capitalized in Canada,” Flaherty said. “I’m satisfied they are well capitalized in accordance with the requirements.”