If you are looking for a home mortgage in Greater Vancouver, you might want to look elsewhere than Scotiabank.
In the accompanying conference call with the report of third quarter earnings of $1.9 billion, the bank said that they were willingly ceding market share in the mortgage lending space amid signs of froth in the Canadian housing market.
Numerous institutions, from credit ratings agencies to the International Monetary Fund, have warned of the risks of a correction or crash in home prices to the Canadian economy.
The Bank noted that they are tightening exceptions, tightening organizations, and reducing pre-approved mortgages.
It also noted that the pullback in the mortgage market is very much by choice.
And the bank is hitting mortgage lending in our market from all sides, with CEO Brian Porter stating Scotiabank was easing lending in Vancouver because of concerns about the pace of rising prices, and Chief Risk Officer Stephen Hart said that the decision to scale back mortgage lending was part of a prudent business decision.
As we’ve noted, the Canadian banks have outperformed of late and any warning from a major lender such as Scotiabank has to illicit a fair degree of caution.