The share of new fixed-rate mortgages increased from 50 per cent in 2011 to almost 90 per cent last year – a reflection of both attractively priced fixed rates and the Bank of Canada’s tightening bias. Second, banks and other lenders need to carefully consider risks when they extend loans to households.
In his keynote address to the recent conference on macroeconomic challenges that was organised by the Bank, Professor David Llewellyn argued that none of the proposed solutions would be sufficient on their own, and that unless a number of solutions were implemented concurrently, a negative outcome was more likely.