Lyle Fisher Oct 05, 2011 15:19:40 PM http://www.news1130.com
OTTAWA (NEWS1130) – The International Monetary Fund says Ottawa isn’t doing enough to address Canadians ballooning household debt. The I-M-F is warning that if the housing market weakens, our economy could be in deep trouble.
The fund says developments on the housing front require increased vigilance, and more should be done to prevent a further buildup of debt .
But TD Bank economist Derek Burlton says our finance minister has already taken action on the mortgage front. “The risks are certainly there. I think one has to give credit to the federal government. They have been responding. They’ve tightened mortgage borrowing rules 3 times in the last couple of years, and whether they’ve gone far enough is obviously open to opinion.”
Finance Minister Jim Flaherty says he hasn’t seen any evidence that Canada is entering a housing bubble.
Bank of Canada Governor Mark Carney has been warning for some time now that Canadian are taking on too much debt , mainly due to high mortgages.