CMHC CEO: Canadians have a debt problem

That home-equity credit card needs to be paid at some point

The Canadian Mortgage and Housing Corp is a government-backed lender, similar to Fannie and Freddie, and its CEO is worried about too many people using house-price rises to go into debt.

«We do have a debt problem,» said CEO Evan Siddall at the Harvard Club of New York, according to Bloomberg. «The more house price-financed debt you have, the more likely you are taxing your economic future.»

He said that metrics on debt-to-disposable income understate risk because many home-equity loans are authorized but unused.

One day the tide will go out on the Canadian economy and it’s going to sting.

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