TORONTO, July 7 (Reuters) - Canada's banking regulator said
on Thursday it has written to lenders to tighten expectations
that they engage in prudent underwriting of residential mortgage
loans.
The Office of the Superintendent of Financial Institutions
said that, with Canadian household debt levels at all-time
highs, persistently low interest rates and rapid house price
increases in some areas, the prudential risks and
vulnerabilities for financial institutions have increased.