The chief executive of CIBC says that the new mortgage rules coming into effect Monday are “prudent” and will have a positive effect on the Canadian housing system.

Speaking at an economic forum in Ottawa, Victor Dodig told The Canadian Press that it’s a balancing act to keep the housing market and construction sector buoyant while ensuring that mortgage lenders and banks are lending prudently.

For domestic homebuyers including first-time buyers, Mr Dodig said that he expected a “relatively modest” impact from the changes, which he believes will have long-term benefits.

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