OTTAWA -Canada's banking regulator is limiting the number of highly leveraged loans in banks' residential mortgage portfolios, which have ballooned alongside house prices to make Canadian borrowers among the most indebted in the world, the Globe and Mail reported on Friday.
The new income limit is expected to take effect in the first quarter of next year, the report said, adding it would not apply to insured loans in which the borrower has to pay for mortgage insurance because their down payment is less than 20% of the property's purchase price. "Banks in Canada have a long history of working with their customers to keep their mortgages in good standing," Canadian Bankers Association, a top lobbying group said.
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