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McKay said recent government policy aimed at reining in soaring home prices is likely to tamp down the market for first-time buyers. However, he said factors including immigration trends and limited housing supply in markets such as Vancouver and Toronto are expected to moderate any pullback in real estate.

At the same conference, Bank of Montreal chief executive Bill Downe said homeowners in the United States walked away from their mortgages during the real estate meltdown in 2008 only when they lost their jobs, got a divorce, or if the value of their home fell to 60 per cent or less than the mortgage.

He said 56 per cent of BMO’s mortgage book carries default insurance, and the average loan to value of the uninsured portion is 54 per cent.

“So there’s an awful lot of equity” behind BMO’s mortgage loans, Downe said.

The rate and economic outlook in the United States, particularly under President-elect Donald Trump, is expected to benefit Canadian banks with operations there, the CEOs said.

“When the sentiment turns, it is going to be helpful for us,” Toronto-Dominion Bank CEO Bharat Masrani told the conference, citing anticipated policies including tax reform, infrastructure spending, and regulatory streamlining.

Brian Porter, the CEO of Bank of Nova Scotia, was asked whether Trump’s suggestion he’ll tear up the North American Free Trade Agreement (NAFTA) is a concern for Scotia, given the bank’s operations in both Canada and Mexico.