Whilst Canada's domestic recovery from the financial crisis has been relatively good, the challenging global market has contributed to the Bank of Canada maintaining historically low interest rates of 1% for a prolonged period. This accommodative monetary policy has supported exports and private sector borrowing, but it may have also created some problems. Cheap mortgage rates have led to record levels of household debt and rising property prices. Having doubled over the past ten years, average house prices continue to rise faster than incomes. We are concerned about what will happen when interest rates increase, likely from next year, and mortgage payments follow.