Canada’s housing agency is raising the alarm over the country’s real estate sector.
In an opinion column in the Globe and Mail, President and CEO of the Canada Mortgage and Housing Corporation – Evan Siddall – says it will increase the risk rating in its overall assessment of the country’s housing market to “strong” from “moderate” when it issues a new report on October 26.
Siddall says the housing agency will issue its first “red warning” for the Canadian housing market as a whole.
He says, “affordability pressures hurt lower-income households the most, and cause real socioeconomic consequences,” contributing to the warning.
As of Monday, the Federal Government is tightening mortgage rules to reduce risk in the market.
Ottawa is also closing tax loopholes used by some foreign buyers.