Home Capital liquidity issues is an anomaly says RBC chief

The liquidity issues seen at Home Capital is not an industry-wide problem and the troubled mortgage lender is not a systemic risk due to its small share of the market.

That was the message from Royal Bank of Canada CEO David McKay who told analysts that any continuance of Home Capital’s funding issues will be refinanced by other lenders.

The Financial Post reports that McKay’s comments were echoed by CIBC chief executive Victor Dodig who said that the housing market and economy are not under threat from Home Capital liquidity issues.

"It is important to note that CIBC does not originate subprime or even near-prime mortgage loans," Dodig said.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Market update:

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release

Poll

Should government update pot rules to prohibit growing in rentals?