TORONTO — The Bank of Nova Scotia is among lenders boosting loans to condominium developers as regulators become less vocal about housing-market risk, according to Canada’s third-biggest bank.
Scotiabank is financing as much as 75% of a condo project’s value and others are doing the same, according to Chris Milne, vice-president of real estate lending at the bank. That’s up from about 70% in the past, when banks were concerned “there may be a meltdown” and regulators were more vocal about residential market risk, Mr. Milne said.
“The banks are back out there lending in the condo sector,” Mr. Milne said at a Toronto real estate conference Tuesday. “There is a hole that the banks are looking to fill. The regulators were really pounding them a year and a half ago and now it’s quiet.”
There is a hole that the banks are looking to fill
Banks are boosting financing…
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