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The problems faced by embattled alternative mortgage lender Home Capital Group Inc. aren’t indicative of broader problems in the Canadian real estate market, the head of Brookfield Asset Management Inc. says.

Bruce Flatt, chief executive officer of Brookfield, Canada’s largest alternative asset manager, said he believes the Canadian banking and regulatory system remains strong.

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“This is not a systemic issue in the country. It won’t be a problem, and I think all the banks will be fine,” Flatt said in an interview with Bloomberg TV’s Erik Schatzker.

Flatt said underwriting standards and the insurance policies from the government on mortgages in the country are “very good.”

“The Canadian banking system is one of the best in the world,” he said. “These are unbelievably well-financed and well-run organizations.”

He added that if the situation at Home Capital deflates the housing market a little bit, that’s maybe a good thing.

“I suspect 30 percent increases in Toronto last year are not based on fundamental value increases,” he said. “There’s more buyers than sellers, and foreign money coming into the country. But it’s not a problem for the Canadian system.”

Brookfield manages about $250 billion in assets. Its publicly traded real estate arm, Brookfield Property Partners LP, has total assets of about $78 billion around the globe.