The Federal Reserve Bank of Canada says it has tightened up its lending guidelines for Canadians to keep pace with rising home prices and mortgage rates.
The move comes amid concern that Canadians are being pushed too hard to buy a home at inflated prices and have not yet adjusted to rising income.
The central bank’s latest report on household income is released Monday, as Canadians prepare to mark the end of the summer holiday shopping season.
It finds that Canadian families’ income has fallen by roughly 4 per cent since the end, and it warns that the number of people in poverty has risen.
The report says that, while incomes for families with two or more children have risen over the last decade, incomes for couples with three or more kids have risen by more than 4 per