Thursday, September 3rd11.9°C
26775
26096

CMHC guarantee on mortgage insurance putting taxpayers at risk, says OECD

OTTAWA - The Organization for Economic Co-operation and Development is warning that Canadian taxpayers are vulnerable to a serious correction in the country's overheated housing market.

In its first major review of the Canadian economy in two years, the international economic body says Ottawa should rethink the way it insures borrowing in the real estate market through Canada Mortgage and Housing Corp., saying it exposes taxpayers to more risk than necessary.

It says the federal government should limit the percentage of a mortgage CMHC can insure, rather than guaranteeing 100 per cent of the loan.

Among other recommendations, the OECD says Canada should improve its skills training because shortages in some sectors in resource-rich Alberta and Saskatchewan could limit economic growth.

The report is also critical of Canada's environmental record, calling the expansion of the oilsands in Alberta the principal reason the country won't be able to meet its 2020 target on reduction of greenhouse gas emissions. It recommends that Canada increase the pricing on carbon emissions, noting that currently it has one of the lowest effective tax rates on carbon among industrialized countries.

Generally, the OECD says Canada's economy is doing relatively well with expected growth rates of 2.5 per cent this year and 2.7 per cent in 2015. But it warns that inequality is rising and that housing in some large cities, such as Vancouver, has become too expensive for many.

The Canadian Press


Read more Business News

26873


Recent Trending




Today's Market
S&P TSX13596.41+51.16
S&P CDNX553.75+3.70
DJIA16374.76+23.38
Nasdaq4733.50-16.48
S&P 5001951.13+2.27
CDN Dollar0.7568-0.0011
Gold1123.40-0.30
Oil46.10-0.65
Lumber233.30-0.70
Natural Gas2.707-0.018

 
Okanagan Companies
Pacific Safety0.22+0.00
Knighthawk0.010.00
QHR Technologies Inc1.24+0.05
Cantex0.04-0.01
Anavex Life Sciences1.11-0.14
Metalex Ventures0.05-0.00
Russel Metals21.09+0.22
Copper Mountain Mining0.60-0.01
Colorado Resources0.075-0.010
ReliaBrand Inc0.0045+0.0005
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.08-0.01
Decisive Dividend Corp2.50-0.12

 



27218

FEATURED Property
2354538445 Highridge Road
10102128 bedrooms
$1,550,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Where does the money go?

Photo: Thinkstock.comOne of the major components of business relationships that involve money are the fees in the investment industry. There is currently a quiet battle being waged between the practit...


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...

_








Member of BC Press Council


27438