Dodge Thinks CHMC Needs to Reconsider Criteria
The former head of the Bank of Canada, David Doge, has thrown his hat into the ring. Dodge who was the central bank chief from 2001 to 2009 said that he believes “that the relation of house prices to Canadians’ income is right at the high end of what one would think would likely be sustainable over time”.
According to Dodge, interest rates need to be very low right now in order for the economy to recover, but that that the issue at this time is not interest rates, but rather, that the Canada Mortgage and Housing Corporation (CMHC) needs to look more closely at the type of mortgages that it insures.
In the last couple of weeks it seems that there has been a lot of questioning the role of CHMC’s policies and whether or not they are helping or hurting Canadians and the real estate market. Once the new criteria come into effect, it will be interesting to see what the consensus is about CMHC.
