Saturday, August 23rd10.1°C
22568
21508

RBC says housing market is solid

Royal Bank CEO Gord Nixon says a slowdown in the Canadian real estate market is affecting mortgage lending but the softness is not a crisis since he expects the country's housing market will remain solid.

The head of Canada's largest bank told a RBC banking conference Tuesday that he expects the bank's consumer lending growth will slow to mid single digits but it should see an increase in commercial loans.

Nixon said the bank has relatively small exposure to the condominium market and has requirements that protect it from troubled lenders.

However, he said there would be an impact on the broader economy from a significant decline in the real estate market.

Faced with a continuing low margin environment, he said the bank will continue to focus on containing costs.

While he's confident with most parts of the bank's businesses, Nixon said it will focus on improving its Caribbean operations which he said have been underperforming.

Bank of Montreal CEO Bill Downe told the conference the bank deliberately curtailed its exposure to the Canadian condo construction market after watching some of the problems surface in the United States in 2007 and 2008.

Downe expects the overall U.S. housing market will show considerable strength this spring which will stimulate commercial loans.

After a strong fourth quarter with U.S. mortgages, he's anticipating that the American economy will be much stronger this year.

The Canadian Press


Read more Business News

22710


Recent Trending




Today's Market
S&P TSX15535.55-19.71
S&P CDNX1005.583.38
DJIA17001.22-38.27
Nasdaq4538.551+6.446
S&P 5001988.40-3.97
CDN Dollar0.9137-0.0003
Gold1279.90+6.2001
Oil96.30+1.82
Lumber352.80-2.80
Natural Gas3.88-0.009

 
Okanagan Companies
Pacific Safety0.18-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.20-0.01
Cantex0.065-0.005
Anavex Life Sciences0.265+0.005
Metalex Ventures0.08+0.005
Russel Metals36.78-0.81
Copper Mountain Mining2.99+0.11
Colorado Resources0.17-0.015
ReliaBrand Inc0.115+0.02
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.26+0.045

 



22831

FEATURED Property
2017542LOCATION, LOCATION, LOCATION !!!
$115,000
more details
Click here to feature your property
Please wait... loading


How much mortgage should you carry?

There are several things to consider when deciding how much home to buy. 1. Draw up a budget including the new mortgage payments. While the rules used by most lenders require that the mortgage paym...


What is a journey without a destination?

Photo: ContributedI would call it a joy ride... You see a planned project or business has a destination. It may be an ongoing revenue stream, it may be a business value or an exit strategy. If you don...


Joint accounts: what you need to know!

Establishing a joint account may seem like a great strategy at first glance. However, there are many factors that must be considered before taking this action. This article will explore the use of &ls...

_



22885

22854


Member of BC Press Council


22814