Flaherty cites Toronto condos as need for CMHC oversight
Published Thursday, April 26, 2012 12:21PM EDT
Last Updated Saturday, May 19, 2012 8:09AM EDT
Finance Minister Jim Flaherty identified Toronto's condo market as one of his primary concerns after moving to regain control over government-backed mortgage insurance.
The federal government tabled a budget implementation bill on Thursday that would give Canada's financial regulator oversight over the Canada Mortgage and Housing Corporation (CMHC).
Flaherty said it was important that the Office of the Superintendent of Financial Institutions had a say in the issuing of such insurance.
Flaherty said the booming condo markets in Canada's major cities were at the core of the decision.
"We watch the market closely. And I particularly watch the condo market in Vancouver and Toronto, and to some extent in Montreal," Flaherty told media on Thursday.
"[CMHC] has become an important financial institution in Canada and it was not subject to the same supervision by the Office of the Superintendent of Financial Institutions. This was an important step forward."
The bill moved on Thursday will also get the CMHC out of the covered bonds business.