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Ottawa to put limits on use of portfolio mortgage insurance

Blog by Brad Herman | March 22nd, 2013

Ottawa intends to introduce some limits on the use of mortgage insurance, a move it hopes will increase market discipline in residential lending and reduce taxpayer exposure to the housing sector.

The changes, announced in the federal budget on Thursday, will not have a direct effect on consumers wanting to take out mortgages. But it could cause banks to raise their rates or limit their lending.