Wednesday, October 22nd12.2°C
23711
22501

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

22970


Recent Trending




Today's Market
S&P TSX14312.07-235.64
S&P CDNX808.00-14.28
DJIA16461.32-153.49
Nasdaq4382.847-36.632
S&P 5001927.11-14.17
CDN Dollar0.8898+0.0003
Gold1242.10-3.40
Oil79.93-2.03
Lumber329.60+0.90
Natural Gas3.662-0.049

 
Okanagan Companies
Pacific Safety0.12+0.02
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.055-0.025
Anavex Life Sciences0.198+0.006
Metalex Ventures0.05+0.005
Russel Metals32.53-0.56
Copper Mountain Mining2.10-0.07
Colorado Resources0.145-0.005
ReliaBrand Inc0.013+0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.405-0.055

 



23028

FEATURED Property
2083931#9 3365 Casorso Road,
$384,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...


Experts share strategies in Kelowna

The third week in October is “Small Business Week”, a week dedicated to supporting local, small businesses. The week was designed to bring awareness to Canadians about the role small busin...

_








Member of BC Press Council


22786