Not Every Big Bank in Favour of Changes
Recently, I mentioned an article in the Globe and Mail that discussed that the top six banks in Canada were in favour of government changes to mortgage rules. Now according to a report in the Toronto Star, it seems that not every bank supports reining in mortgage criteria.
Peter Aceto, president and chief executive of ING Direct Canada, opposes the changes being considered, feeling that the government should allow banks to make responsible decisions about who qualifies for a mortgage.
On the other side is Tim Hockley, TD Canada Trust president and CEO, who is concerned about the amount of debt Canadians are carrying due to low interest rates.
The whole point of making the changes is to avoid a housing bubble. While Finance Minister Jim Flaherty has recently released a statement that says that there is no evidence that Canada is currently in a bubble, there is always someone with an alternate point of view.
In this particular instance, Montreal-based investment adviser, Stephen Jarislowsky is “convinced” that Canada is in the grips of a bubble, fuelled by government measures that encouraged homebuyers to take on too much debt.
As I scan through articles on this topic it is obvious that no one has a crystal ball. I guess most people forget that bubbles are best seen in hindsight.
