The Bank of Canada is warning of an impending housing price correction, putting Canadian mortgage holders at risk.

The authors noted that house prices have risen sharply in most parts of the country over the past decade, with house prices reaching a historically high level in relation to income. The percentage of household debt to income has risen from 110 per cent in 1999 to 153 per cent currently.

The bank also suggested at 10 per cent drop in home prices in the near future could result in a ...


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