Saskatoon Mortgage Broker shares article: housing market needs no intervention

Joe Oliver says housing market needs no intervention, Finance minister meets with private-sector forecasters, economists

Article by CBC News, June 16, 2014

“Federal Finance Minister Joe Oliver says he believes Canada’s housing market is on track for a soft landing and he doesn’t believe he should intervene on low mortgage rates being offered by banks.

“On the advice of the Bank of Canada and CMHC [Canada Mortgage and Housing Corporation] we are looking toward a soft landing and we don’t believe we are in a bubble situation,” he said at a news conference today.

A report from the Canadian Real Estate Association released Monday morning said the average resale price of a Canadian home rose 7.1 per cent in the past year to $416,584 in May.

But Oliver said he did not believe it was his role to speak directly to the banks about lowering mortgage rates, which have allowed five-year rates to slip below three per cent this spring.

“I have not spoken to the banks about what their rate policies should be. I don’t feel that is appropriate or necessary at this point,” Oliver said.”

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