Debt loads tied to overheated Canadian housing markets are making households more vulnerable, but on the whole Canada's economy is resilient enough to withstand any major shocks to the system, the Bank of Canada says. Canada's central bank released its semi-annual Financial System Review on Thursday, a document which outlines some of the major risks that the Bank of Canada sees on the economic horizon. As expected, the housing market — and debt loads tied to it — features prominently in the report. "Imbalances in the Canadian housing market have also grown since December," the bank said, "mainly due to an acceleration in prices in Toronto and surrounding areas." Housing market critics often point to the painful correction that happened in the United States, and say something similar could happen in Canada.

Source: CBC News June 08, 2017 14:10 UTC