Poloz Warns Potential Homebuyers on Toronto, Vancouver Risks.Bank of Canada Governor Stephen Poloz gave one of his bluntest warnings to date about the country’s housing boom, saying Vancouver and Toronto buyers should realize strong price gains probably can’t be sustained by economic fundamentals.
“This suggests that prospective homebuyers and their lenders should not extrapolate recent real estate performance into the future when contemplating a transaction,” Poloz said in a statement from Ottawa.Poloz Warns Potential Homebuyers on Toronto, Vancouver Risks. Home-price gains in Vancouver accelerated to a 30 percent year-over-year pace in May, from 15 percent at the end of last year, the bank said. In Toronto, the pace of price gains quickened to 15 percent from 10 percent over that period. The two cities are also leading a rise in the share of new mortgages exceeding 450 percent of borrower income, the central bank said.

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