Flaherty overstepped his bounds on mortgage rates: conservative minister

TORONTO – Not everyone in the Conservative cabinet is backing Jim Flaherty’s latest intervention in the mortgage market.

Small Business Minister Maxime Bernier says he believes the finance minister overstepped his bounds by having his office phone Manulife Financial this week to ask that they withdraw their 2.89 per cent discount rate on five-year mortgages.

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But, while donning a new pair of shoes in Toronto today in advance of tomorrow’s budget, Flaherty maintained it was a necessary move that will help consumers in the long run.

Flaherty says he just wants Canadians to be careful and know that interest rates will eventually go up.

He says he wants people to be able to afford their mortgages.

Flaherty also says tomorrow`s budget will include “specific measures” to bolster the country’s hard-hit manufacturing sector.

The Opposition says Flaherty was wrong to interfere with decisions of private businesses.