Average home prices in Canada jumped strongly again in July, new figures from the country’s real estate association released Friday show, mainly as a result of sustained exuberance among buyers in Vancouver and Toronto. Following the Royal Bank of Canada suspension last week of two of its mortgage brokers over allegations of falsifying information regarding borrowers incomes, Home Capital's (RBC) and the Bank of Montreal (BMO ) are facing questions as to whether they too have inadvertently given home loans to risky borrowers. Both banks have assured regulators that their internal checks are strong enough to weed out so-called 'liar loans', however, investigations continue following a home values spike last week in Vancouver which saw prices surge in each city, thereby forcing buyers to take out increasingly larger loans.
Following the Royal Bank of Canada suspension last week of two of its mortgage brokers over allegations of falsifying information regarding borrowers incomes, Home Capital's (RBC) and the Bank of Montreal (BMO ) are facing questions as to whether they too have inadvertently given home loans to risky borrowers. Both banks have assured regulators that their internal checks are strong enough to weed out so-called 'liar loans', however, investigations continue following a home values spike last week in Vancouver which saw prices surge in each city, thereby forcing buyers to take out increasingly larger loans.