Prime Minister Stephen Harper has assured that there is no need for additional intervention as Ottawa is “closely watching developments in the still-hot housing market.”
 
“I’m not saying I’m unconcerned. We are watching it. We’re not planning to take any immediate action,” Harper told reporters in Mississauga, Ont. “We continue to watch the housing market and the lending and borrowing situation very carefully.”
 
The Prime Minister’s remarks came after the Bank of Montreal announced the drop for its five-year fixed rate this week, which was immediately followed by TD Canada trust.
 
Harper also expressed optimism, saying he believes Canada’s financial institutions remain strong and well capitalized.
 
The Royal Bank of Canada (RBC) echoed Harper’s sentiment, saying that total outstanding home loans were up 5.4 per cent from 2014 levels, marking the fastest rate since November 2013.
 
“Following a sustained period of stable year-over-year increases, mortgage growth accelerated for the third consecutive month in January,” RBC economists said in a research note published earlier this month.
 

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