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.
Third, the federal government has on four occasions between 2008 and 2012 taken prudent and timely measures to support the long-term stability of the housing market by tightening the minimum standards for government-backed insured mortgages.