Canadian Finance Minister Jim Flaherty said the government is willing to accept the possibility of slower economic growth in exchange for cooling off the country’s housing market.
Flaherty, speaking on a conference call with reporters today, said he realizes the tougher mortgage rules he announced last week may have a “dampening effect” on the economy and the residential real eatate market.
“We’re prepared to take that risk, quite frankly, because of the greater risk of the development over time of a housing bubble,” he said, adding he’s “very concerned with the condo market in Canada’s largest cities.”
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