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Amid hot housing market, stretched borrowers may be stretching the truth to get loans


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The recent surge in home prices has a federal regulator reminding lenders to stay sharp, but it is also prompting concern that borrowers may be stretching themselves financially and, in some cases, stretching the truth when they apply for a mortgage.
One Canadian mortgage brokerage told the Financial Post it has recently uncovered a rash of suspicious employment letters submitted by individuals trying to obtain loans in the Greater Toronto Area.
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Rising mortgage rates yet to put a dent in exuberant housing market as policymakers take note


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Mortgage rates are climbing across Canada, but even increased borrowing costs may not be enough to tame a raging market for residential real estate that is starting to catch the attention of policymakers.
Recent housing market activity has been “much stronger than expected,” the Bank of Canada said last week. Mortgage rates, meanwhile, remain relatively low, even as they’ve been ticking up lately.
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“The moderate rise in interest rates we’ve seen, and the historically low rates that we have, isn’t deterring clients in any large fashion,” said Dan Eisner, chief executive of Calgary-based mortgage brokerage True North Mortgage Inc. ....

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