skip to Main Content

Nothing to See Here Folks, RBC Says on Stricter Canadian Mortgages

By Doug Alexander for Bloomberg

Strict new mortgage rules that have helped send Canadian home sales to a five-year low are little more than a flesh wound, according to Royal Bank of Canada.

“We had never really believed that this would be a significant impact on our mortgage business,” Neil McLaughlin, head of Canadian banking at the country’s second-biggest bank said Thursday on an earnings call. “We’re seeing minor skew to the portfolio, but nothing significant.”

Vancouver Real Estate News, Market Updates, Insider Tips, Stats, & Analysis

Sign up for insider real estate news & tips from our podcasting team.

Are you a realtor? Click here
Selling Your Home? Click here

  • Reload
  • Should be Empty:

McLaughlin reiterated Royal Bank’s earlier guidance of targeting “mid single-digit” mortgage growth even with a housing slowdown and implementation of tougher mortgage qualifying rules by regulators in January. The measures, known as B-20, require borrowers to qualify at the greater of the Bank of Canada’s five-year benchmark rate or 2 percentage points higher than a bank’s offered mortgage rate. The Bank of Canada rate has jumped 35 basis points this year, to 5.34 percent.

Continue reading the full story here >>

This Post Has One Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top