Tighter lending conditions around Canada's small but expanding subprime mortgage market could splash some cold water on Canada's housing sector in the months ahead.
Some lenders in Canada's alternative mortgage market, such as Xceed Mortgage Corp. and Money Connect Home Lending, have already jacked up mortgage rates or withdrawn products in the face of rising costs. Many of the mortgages they had offered were to segments of the population, such as the self-employed and immigrants, that have been key drivers lately in the real estate market.
