Mortgage Risks Fading Thanks to Higher Rates, Tougher Rules: Bank of Canada

Mortgage Risks Fading Thanks to Higher Rates, Tougher Rules: Bank of Canada
Bank of Canada senior deputy governor Carolyn Wilkins responds to a question during a news conference in Ottawa, on Jan. 17, 2018. She told reporters on Nov. 14 that housing market vulnerabilities are easing slowly. The Canadian Press/Adrian Wyld
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OTTAWA—The Bank of Canada provided a closer look on Nov. 14 at just how much stricter mortgage rules and higher interest rates have helped slow the entry of new households into the category of “deeply indebted borrowers.”

The lofty levels of household debt has been a key concern for the Bank of Canada as it gradually raises its trend-setting interest rate, which it has already hiked five times since the summer of 2017.