Article content

Hot housing markets in Vancouver and Toronto prompted Bank of Nova Scotia to ease off on mortgage lending in those cities, Chief Executive Officer Brian Porter said.

“We’re a little concerned about housing prices in the greater Vancouver area and Toronto,” Porter, 58, said Tuesday in an interview on Bloomberg TV Canada. “We just took our foot off the gas the last couple quarters in terms of mortgage growth for the reasons I cited, in terms of Vancouver and Toronto.”

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or Scotiabank curbs mortgages in Vancouver, Toronto as prices soar: 'We're a little concerned' Back to video

Nationwide home sales in April jumped 10.3 per cent from a year earlier, the most activity for that month and the second-highest level ever, according to the Canadian Real Estate Association. In Vancouver, prices rallied 25 per cent in the month to an average of $844,800 and sales climbed 15 percent. Toronto prices jumped 13 per cent to $614,700 and sales rose 7 per cent, the association said.

Scotiabank, Canada’s third-largest lender by assets, had less growth in mortgage loans in the quarter, Porter said. Still, the quality of the loans and trends remain strong and the bank is comfortable with its position, he said.

“Generally, Canadians have a strong ability to self regulate and they’ve demonstrated that before,” Porter said.

— With assistance from Katia Dmitrieva.

Bloomberg News