Jim Flaherty, Canada’s Finance Minister, announced that he does not have plans to tighten mortgage rules any further. Flaherty stated that the country’s housing market remains healthy following the implementation of tightened mortgage rules last March.
The statement comes about following new numbers released by the Bank of Canada on Monday showing that Canadian debt levels have reached record levels during the first quarter of 2011. According to Mark Carney, governor of the Bank of Canada, Canadians have leveraged themselves so much our debt levels are now in line with the United States and England. His concern? When interest rates inevitably rise, a large number of Canadians will be vulnerable to an economic shock.