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MARK BLINCH/Reuters
The housing market is on fire – again.
Hot spots have been popping up in Ontario, British Columbia, Quebec and the Maritimes. There is surging demand for detached and semi-detached houses in Toronto. Real estate prices are also soaring in various suburban and semi-rural regions of the country.
It seems like just yesterday that banks were handing out mortgage deferrals and allowing customers to skip loan payments to stave off a crisis. Last spring, there were fears that housing prices would crash during the pandemic. But now they’re climbing too high. Talk about whiplash.
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Canadians face a tougher stress test to get a mortgage Should you worry? ottawacitizen.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from ottawacitizen.com Daily Mail and Mail on Sunday newspapers.
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Rock-bottom interest rates that have helped prop up the Canadian economy during the pandemic are also helping fuel frenzied activity in the housing market, putting policymakers and regulators in something of a bind when it comes to what they can or should do to address the red-hot sector.
Housing prices have been surging in recent months, driven up by a combination of those record low rates, increased household savings and a desire for more space. And while that may be good for owners, it makes for a growing challenge for buyers, who are taking on larger debt burdens that could be harder to handle if rates rise again.