Monday, September 22nd11.6°C
23284
22916

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

23015


Recent Trending




Today's Market
S&P TSX15265.35-200.19
S&P CDNX955.06-10.73
DJIA17279.7413.75
Nasdaq4579.789-13.637
S&P 5002010.40-0.96
CDN Dollar0.9114-0.001
Gold1215.50-1.10
Oil91.92-0.49
Lumber329.00-0.90
Natural Gas3.901-0.002

 
Okanagan Companies
Pacific Safety0.16-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.37+0.05
Cantex0.05-0.01
Anavex Life Sciences0.223-0.0031
Metalex Ventures0.060.00
Russel Metals35.75-1.26
Copper Mountain Mining2.66-0.02
Colorado Resources0.165-0.01
ReliaBrand Inc0.0249+0.0009
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.29-0.01

 



23226

FEATURED Property
1900220ARE YOU TIRED OF RENTING? ....Family Friendly 3 Bedroom 2 Bath Townhouse ...Central Location
$236,888
more details
image2image2image2
Click here to feature your property
Please wait... loading


Is this a fair offer from ICBC?

“Is this a fair offer from ICBC?”…. “How much should I settle for?”… “What is my claim worth?” These are just some of the questions I regularly get as...


Disruptive innovation

Last night I was privileged to be able to speak at the Greater Westside Board of Trade business awards dinner. Photo: ContributedI talked about Innovation and Collaboration which are two very interes...


Executors and their duties

There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...

_





23499


Member of BC Press Council


22496