Will Canada's Housing Boom Go Bust?

The Governor of the Bank of Canada, Stephen Poloz, discussed the unsustainable housing price increases in Vancouver and Toronto during his financial systems review. He highlighted the risks posed by high mortgage levels relative to buyers' incomes and suggested that past government interventions have helped stabilize the market. Poloz hinted at the need for further government action to address these issues.

What did Stephen Poloz suggest about the house price increases in Vancouver and Toronto?

• They are likely to continue indefinitely.

• They are not sustainable in the long term.

• They are beneficial for the economy.

• They are a result of government policies.

What was the percentage increase in house prices in Toronto over the year?

• 30%

• 20%

• 15%

• 10%

What is a significant risk factor in the mortgage market according to Stephen Poloz?

• High unemployment

• Low interest rates

• Decreasing property values

• Mortgages rising to 450% of buyers' income

How did Stephen Poloz view the past government initiatives in the housing market?

• As ineffective

• As a buffer that made the system more resilient

• As harmful to buyers

• As unnecessary

What did Stephen Poloz hint at regarding future government actions?

• The government should reduce its involvement.

• The government should do more to control the market.

• The government should increase interest rates.

• The government should provide more subsidies.