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“It’s going to come down, and a lot of people are going to get hurt,” Prem Watsa, head of Fairfax Financial Holdings Ltd., said Thursdayduring the Canadian investment firm’s annual general meeting in Toronto. Watsa compared the real estate bubble in Toronto to previous situations in Ireland and Dubai.

Buyers’ Levy

Ontario’s provincial government said it will apply a 15 per cent levy on non-Canadian citizens, non-permanent residents and non-Canadian corporations buying residential properties containing one to six units in the greater Toronto area. A limit on annual rent increases also will be imposed on all buildings constructed since 1991.

When young people cannot afford homes “we know we have a problem and we know we have to act,” Ontario Premier Kathleen Wynne said Thursday at a briefing.

The issues at Home Capitalrelate to an investigation into loans with faulty income information. The company cut ties with 45 brokers in 2015 after finding falsified borrower income information, the same flaw that sunk many subprime lenders in the U.S. during the housing crisis. The Ontario Securities Commission alleged Wednesday night that the company’s former officials didn’t satisfy disclosure requirements, made “materially misleading statements” and failed to comply with other securities rules.

“I think a lot of this mortgage fraud in Canada has been covered up and you’re now starting to see tips of various icebergs hitting the boat,” Marc Cohodes, an investor who’s betting against Home Capital’s stock, said in a telephone interview.