Bank of Canada Warns of ‘Tinkering’ With Mortgage Rules

The Bank of Canada’s second in command cautioned against “tinkering too much with the mortgage market” to fix housing affordability.

Canada’s high home prices are primarily a function of a supply and demand imbalance, and the fix “will take time,” Senior Deputy Governor Carolyn Rogers said Wednesday in Toronto. While she said she was encouraged by “governments at all levels” focusing on the problem and bringing creative solutions, policymakers and regulators need to tread carefully as they adjust mortgage rules.

“Leaning too much on measures that reduce the short-term cost of financing could have long-term impact on the financial ...