The Bank of Israel has raised its March interest rate by a quarter of one per cent, prompted by higher than expected inflation, strong economic activity and continued fears about an overheating housing market.
Israel’s central bank also said “the expected timing of an increase in the Fed interest rate has been brought forward”. Read more
But it’s tightening standards anyway.
According to new rules released today, borrowers must meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. Canadians also won’t be able to take out home equity loans for the last 10 per cent of their home’s value. And those who buy investment properties will need to put down 20 per cent in order to receive government-backed mortgage insurance.
Still, Jim Flaherty, Minister of Finance, assures Canadians that there’s no housing market bubble, even as prices break new records in some cities. Read more