[Craic] National Bank CEO cautions banks to monitor mortgage market - The Globe and Mail

[Rob Anderson]

Expect the housing market to get even hotter, house prices to go even higher, rents to increase, inflation to surge and even more people entirely shut out of affordable housing.

Bob

 Canada’s major banks are fielding a deluge of applications for home loans, and many bankers expect that will continue for the rest of this year, especially if immigration levels rebound. A rising tide for all mortgage lenders has helped shore up profits at a time when demand for other types of loans has been sluggish amid continued lockdowns.
As hot as housing markets are now, they could still get busier. Immigration is a key driver of demand for new mortgage loans, but slowed sharply in the pandemic. As borders reopen, it could add a new wave of demand to the market, widening an existing imbalance relative to housing supply.

“We fully expect that as the vaccine rolls out through the spring, the summer and into the fall, the federal government and all the municipalities that have benefited from immigration will have wide-open doors,” said Dan Rees, head of Canadian banking at Bank of Nova Scotia. “We expect as immigration gets going, that the housing market will continue to motor from here into [fiscal 2022].”p



https://www.theglobeandmail.com/business/article-national-bank-ceo-cautions-banks-to-monitor-mortgage-market/


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