Canada ready to tighten mortgage insurance market

Tue May 15, 2012 4:34pm EDT
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OTTAWA (Reuters) - The Canadian government will act if needed to further tighten the mortgage insurance market, Finance Minister Jim Flaherty said on Tuesday.

Some analysts fear low interest rates are helping to fuel a possible bubble in the Canadian housing market. Speaking to the House of Commons Finance Committee, Flaherty noted that the Conservative government had clamped down on the market three times since July 2008.

"We will take further steps if necessary," he said.

(Reporting by David Ljunggren)

Canada's Finance Minister Jim Flaherty waits to testify before the Commons finance committee on Parliament Hill in Ottawa May 15, 2012. REUTERS/Chris Wattie