Monday, 12 August 2013

After decades of stoking mortgages, Ottawa in a mess of its own making

Required reading!

"It’s getting hard to keep track of how many times the federal government has tried to lasso the galloping housing market.
The latest is a move by Canada Mortgage and Housing Corp., a federal Crown corporation, to limit the guarantees it offers banks on their mortgage-backed securities."
"The federal government has had a major role in stoking the rapid expansion of mortgage credit in Canada. Now, as the long credit-fuelled rush into real estate appears to be stalling, taxpayers could be stuck with a large and unexpected bill.
Three-quarters of all Canadian mortgages are insured by the federal government, up from only 30 per cent in 1988. Ottawa guarantees a total of $900-billion worth of mortgage insurance."

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