Fitch Ratings has always maintained that Canadian housing prices are overvalued by an estimated 20 per cent but believes that the industry will remain stable despite this.  Many other industries bodies have pointed out the excess valuation, pegging its figures from 10 to 60 percent.

Still, Fitch does not expect irregularity or the kind of fluctuation that can send the market  into a tailspin.  Ottawa has been  doing its fair share to temper excessive increase while keeping a firm eye on uncontrolled consumer spending.

The Globe and Mail report quotes Fitch’s finding:  “The Canadian government is exerting a moderating influence on the market, following concerns over the long-term viability of household debt levels and his high prices.  This should lead to muted lending in 2015.”

Estimated mortgage rate increase remains at a manageable 3.25 per cent for 2015, according to the Canadian Association of Accredited Mortgage Professionals.  This is still far lower than the standard 8.6 per cent in the early 2000’s.

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