Canadian concerns about a housing bubble are overblown in a country where credit growth is modest and the job market is stable, says Bank of Nova Scotia
Chief Executive Officer Brian Porter.
“Bubble is perhaps the most overused word since the global financial crisis,” Porter said in an interview yesterday in Washington, referring to Canada’s housing market. “We are very comfortable in terms of our exposure, we think we have monitored it well, and we stress test that.”
Domestic mortgages worth about C$200 billion ($179 billion) are the biggest part of the Toronto-based lender’s balance sheet, Porter said, and the value of those assets can withstand even major jumps in unemployment or interest rates. Gains in housing in Toronto, a focus of concern among regulators after a surge in prices and condominium construction, are backed by population growth, he said.