In their most recent weekly financial digest, BMO economist Sherry Cooper adamantly states that the financial strength of Canada’s mortgage insurer, CMHC, is solid.
CMHC is fully funded and strong enough to withstand any reasonable (though improbable) stress test. In addition, CMHC is working closely with the Bank of Canada and the Department of Finance to analyze Canadian house prices by city (CMA) looking for warning signs of a potential bubble.
At the moment, there is little evidence to suggest a problematic overvaluation in the Canadian housing market overall, although some centres “warrant close monitoring.”
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