What Housing Bubble, What Mortgage Trouble?
U.S. investment bank Goldman Sachs says there’s an almost one in three chance of Canada’s housing market going bust in the near future. “The end of Canada’s housing boom?”, so said The Economist . Utter Nonsense? Sounds like it because … Although concerns about Canada’s record level of household debt have intensified recently. And a recent poll conducted for Bloomberg News suggests it is also negatively impacting Canadians’ sentiments towards their country’s housing market — BUT this is not the case for National Bank. “Underwriting standards for mortgage debt in Canada has become an issue for many investors following the troubles of an alternative mortgage lender at a time when home price inflation in Ontario is ahead of fundamentals,” National Bank Chief Economist Stefane Marion explains. And here comes the politically correct statements (anticipated – What else to expect from the power-that-be?):- Apparently, the National Bank believes there ...