No Mortgage Crisis in Canada
Although Canada’s banks haven’t dished out risky sub-prime loans and don’t practice some of the questionable trading practices that occurred in the U.S., its real estate market is still slumping, said Pam Alexander, CEO and managing director of North American operations for RE/MAX Ontario-Atlantic Canada Inc. and the Integra Enterprises Corporation.
Alexander was speaking in January as part of panel on international real estate at the Inman News Real Estate Connect conference in New York City.
“If the United States sneezes, we catch a cold,” she said.
Not only do Canadian banks abstain from sub-prime loans, they keep the vast majority of their mortgages on their own balance sheets, she said, so there is no mortgage crisis in Canada. Activity is down simply because of sagging consumer confidence, she said.
“Anywhere that saw double-digit increases in the last four to five years will see adjustments downward,” Alexander said, noting that British Columbia is seeing price declines of 10-11 percent.
—Mark Moffa
The occasion is exactly what it sounds like. Part of the problem that has been created was due to the sub prime crisis that was created when major banks started to issue lots of risky credit, and then insured those loans with credit default swaps. The bank doesn’t care about your situation. I, affectingly, have to be necessitated to sympathize with mortgage refinance online.