The Bank of Canada, the Department of Finance, and the Office of the Superintendent of Financial Institutions are all alarmed by the high household debt to after-tax income ratio of Canadians and the overheated housing marked caused by

Question

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The low interest rates have made borrowing cheaper and more attractive, which has led Canadians to take on higher levels of debt. The Bank of Canada, Department of Finance, and Office of Superintendent of Financial Institutions are concerned about this as it could lead to financial instability if there is a housing market correction or an economic downturn.