Pursuits
End of Canada’s ‘Unique’ Mortgage System Means Higher Bank Costs
- Canada to begin consultations as part of housing measures
- ‘We continue to believe that this could have profound impacts’
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The days when Canada’s banks could offload much of the risk of underwriting mortgages onto taxpayers may be drawing to a close.
Canadian Finance Minister Bill Morneau disclosed plans Monday to begin consultations on sharing the risk of mortgage default with the country’s lenders. The move was part of a package of measures designed to stabilize the housing market after years of soaring prices in Vancouver and Toronto.