Canada is not facing a mortgage crisis
The Laurentian Bank of Canada recently revealed that they will have to buy back up to $300 million in loans issued to clients, realising that its vetting practices were not applied thoroughly enough.
Nevertheless, experts, such as Desautels Professor Mo Chaudhury, maintain that these issues are not rampant in the Canadian banking system and that the country is not on the brink of a mortgage crisis comparable to what unfolded in the U.S.
The rise of housing prices, particularly in cities like Vancouver, Toronto, and Montreal, might account for why some loan managers have turned a blind eye to certain approval criteria upon issuing mortgages.
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