Federal government urged to go slow on tightening mortgage-eligibility rules
Mon Dec 21, 5:58 PM
By B.H. Mckenna, The Canadian Press
TORONTO - Hints by Finance Minister Jim Flaherty that Ottawa may tighten mortgage eligibility rules if it sees evidence of a housing bubble developing sent ripples through the industry Monday, with analysts urging a cautious approach.
"The main risk here is overshooting, over-responding and basically shutting down or slowing down significantly the housing market," CIBC senior economist Benjamin Tal said in an interview.
"That is a risk they have to take into account, because the housing market is a major, major contributor to overall economic growth and we are still in a very fragile state of the recovery."
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