Quote:
Originally Posted by Zulu29
So sick of the Cons, Flaherty just interfered with a financial institutions ability to operate in a free market. What a farce. He praises Canadian banks on one hand for being prudent lenders then tell them that their borrowing rate is too low on the other. Heaven forbid we save a few bucks on our mortgages. So ridiculous.
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There are plenty of regulations that affect a banks ability to operate in a free market. While I don't necessarily agree with the move I think the idea is to stave off a rate war amongst the banks. There is concern that people are already overborrowing in this low rate climate and could be in trouble when the rates inevitably go back up. Considering that the government guarantees the majority of these mortgages I don't think it's an extreme position. That being said I prefer to let free markets remain as free as possible.