Bank of Canada: Canadians Are Piling on Debt to Chase Soaring House Prices

The Bank of Canada is sounding the alarm on mortgage debt.

In an interview with the Financial Post, Governor Tiff Macklen said that he was concerned Canadians are stretching their finances to buy houses. Citing higher loan-to-value ratios, he said household indebtedness is on the rise.

He’s not alone in that sentiment. StatCan recently released a report showing that mortgage debt is on the rise. The report showed that demand for mortgages hit $34.9 billion in the fourth quarter — the highest on record.

Original Article Source Credits:   The Motley Fool , https://www.fool.ca/

Article Written By:  Andrew Button 

Original Article Posted on:   April 5, 2021 

Link to Original Article:  https://www.fool.ca/2021/04/05/bank-of-canada-canadians-are-piling-on-debt-to-chase-soaring-house-prices/