VANCOUVER—Canadians have been able to qualify for much larger mortgages over the past two decades because of declining interest rates and rising incomes, and that has more than likely translated into higher home prices, finds a new study by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“Increased borrowing power, brought about by falling interest rates and rising incomes, is potentially the most overlooked and least understood factor influencing home prices across Canada,” said Niels Veldhuis, president of the Fraser Institute.
