In making its latest forecast for the Canadian economy and holding interest rates at 0.5 per cent, the Bank of Canada sounded a familiar note of caution about the housing market. Specifically governor Stephen Poloz highlighted the risk from an unusual “unwinding” of the high levels of mortgage debt and high house prices. He said that as the economy improves the risk from household debt should reduce but that “further weakness in the resource sector or a rapid rise in global interest rates, could have sizable negative effects.” Although there was positivity in Mr Poloz’s speech, the bank is concerned that consumer borrowing is driving growth currently. 

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

More market watch: