IMF warns about Canadian housing market, debt levels

The International Monetary Fund is warning about the housing market's threat to the broader economy, noting that the government might again need to step in if household debt levels continue to rise.

"In Canada, the key priority is to ensure that risks from the housing sector and increases in household debt remain well contained and do not create financial-sector vulnerabilities," the international body says in its twice-a-year report on the global economy that was released Tuesday.

"Thus far, mortgage credit growth has slightly decelerated in response to the measures taken by the authorities, including tighter mortgage insurance standards. If household leverage continues to rise, additional measures may need to be considered."  (more)