An economic expert believes that the possibility of a more severe crisis in Canada's housing market remains a possibility because real estate remains "really overvalued."
Moshe Lander, an economist from Montreal's Concordia University, told CTV News Channel on Tuesday that years of record-low interest rates enticed many Canadian homeowners into over-indebting themselves and buying properties "they couldn't afford."
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The warning came shortly after the CEO of Scotiabank warned that tens of thousands of mortgage holders could be at risk of defaulting and Canada’s banking regulator considers new constraints on mortgage lending.
"If some people are taken down, that's really unfortunate," Lander said. "But it's really necessary to restore some sort of semblance to the market."
Watch the full interview by clicking the video at the top of this article.
