A report from an economist at Capital Economics says that Canada is in a “very big” housing bubble fuelled by high prices and “risky” mortgages.

Author Paul Ashworth says that it will “end in tears” and that its Canadians that are to blame rather than foreign investors: "House prices have been boosted by domestic credit growth, fuelled by relaxed lending standards."

He says that high levels of debt, exacerbated by low interest rates, has combined with banks increasing amortization periods on uninsured mortgages.

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