Bank of Canada Warns of Rising Concern Over Household Debt, Housing Markets

OTTAWA—Canada’s financial system proved its resilience during the Covid-19 pandemic, but rising real-estate prices and mortgage debt are exacerbating vulnerabilities to financial stability posed by the household sector, the Bank of Canada said in a report released Thursday.

The central bank said an unprecedented flow of fiscal and monetary policy support over the past year kept many Canadians from falling behind on debt payments during the economic downturn. But there are growing concerns about household vulnerabilities over…