Finance Minister Jim Flaherty warned again on Monday the government could tighten mortgage rules further if needed, after a report showed the country's household debt levels have soared.
Comments by Finance Minister Jim Flaherty warning that the federal government might consider tightening mortgage rules again to slow rising household debt levels aren't resonating with brokers.
Colin Dreyer, President and CEO of Verico Financial thinks Canadians aren’t being given enough credit when it comes to fiscal responsibility.
“It seems to me that Canadian consumers are somewhat self regulating in terms of being fiscally responsible," Dreyer told Mortgage Broker News. "I think a further tightening of the mortgage rules at this time is not necessary as residential sales are already moderating based on the existing economic conditions.”
Speaking to reporters on Parliament Hill, Flaherty said his office would keep an eye on household debt levels and make mortgage rules changes as they see necessary, but he's not in a hurry as the government has recently tightened mortgage rules.
"There is no reason for extreme concern now. There is reason for concern, so I watch," Flaherty said.
"Part of what I have to do is balance the amount of credit we see out there with the job creation that we see in the economy as well."
