High levels of household debt and escalating house prices may be played down by some Canadian analysts but for observers looking in the picture is more worrying. Moody’s Investors Service reports that Toronto and Vancouver’s house prices are among the highest-rising in the world and many properties are overvalued. Economist Paul Matsiras concludes that those two markets are in a bubble which could burst as fewer buyers are able to afford bigger and bigger mortgages or rents. Moody’s isn’t alone in its concern; The Economist magazine is also sounding a cautionary note about Canada’s “Shaky Economy” which, despite increasing exports, inflation and higher interest rates are dangers ahead. 
 

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: