Rising property prices and the potential for higher interest rates are among risks to Canada’s financial sector according to an international body of central banks.
The Bank for International Settlements warns that Canada’s elevated level of credit-to-GDP, which at 17.4 per cent is well above the organization’s “closely watch” threshold of 10 per cent; puts the economy in danger of a financial crisis.
Although its quarterly report says that the level of debt is manageable currently, it warns that a rise in interest rates at 250 basis points (2.5 per cent) could cause a crisis.
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