Statement made on 20 April 2010 by Senator Céline Hervieux-Payette
Hon. Céline Hervieux-Payette:
Honourable senators, my question is for the Leader of the Government in the Senate. Canadians' ratio of debt to net income now sits at approximately 146 per cent. This figure clearly indicates that we are headed towards a financial crisis that could equal the 2008 crisis in the U.S.
New mortgage rules announced by the Minister of Finance, Jim Flaherty, went into effect yesterday in order to reduce the number of Canadians tempted by low interest rates and rising housing prices and who commit to a mortgage that they may no longer have the means to pay should interest rates increase.
The Conservative government has attempted on a number of occasions to persuade the Canadian public, wrongly, that the housing bubble was not about to burst and has made no tangible efforts to prevent Canadians from going into debt in such a volatile area. What additional measures has this government taken to force financial institutions to exercise more caution when providing mortgages guaranteed by the government?
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