A new report from Canada Mortgage and Housing Corp. named Toronto alongside Regina and Winnipeg as cities now facing a “high” risk of downturn stemming from a combination of factors including overvalued home prices. Following GE Capital 's suspension last week of 45 of its mortgage brokers over allegations of falsifying information about borrowers incomes , the Royal Bank of Canada ( 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 month in Canada which saw a surge in each household , thereby forcing buyers to take out increasingly larger loans .
Following GE Capital 's suspension last week of 45 of its mortgage brokers over allegations of falsifying information about borrowers incomes , the Royal Bank of Canada ( 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 month in Canada which saw a surge in each household , thereby forcing buyers to take out increasingly larger loans .