![\"vancouver-downtown-traffic\"](\"http:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2016\/06\/6044910841_f8bda02f01_b.jpg\")
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The Bank of Canada\u2019s semi-annual Financial Systems Review was released on Thursday, and points to a few specific risks to homeowners. Below, we\u2019ve taken a look at these risks, as well as some cautious optimism from the report.<\/p>\n
High loan-to-income ratio mortgages are on the rise<\/strong><\/p>\n In December\u2019s report, it was shown that there was an increased amount of household indebtedness, and that trend is continuing. Canadians in Vancouver and Toronto are taking on increased ratios of debt-to-income in their mortgages.<\/p>\n A mortgage\u2019s loan-to-income ratio (LTI) is your mortgage debt level relative to your current income. The higher the ratio, the more relative risk you are taking on, as higher future interest rates will more greatly impact someone with a high LTI mortgage.<\/p>\n The commonly compared LTI ratio\u2014450%\u2014increased from 12% of all insured mortgages originating in 2014, and 15% in 2015. This accounts for 24% of all mortgage debt that originated in 2015.<\/p>\n The percentage of insured mortgages with high LTI ratios is on the rise in every part of Canada, but is greatest in Toronto, Calgary, Hamilton, and Vancouver.<\/p>\n That said, this doesn\u2019t reflect how homeowners are dealing with these debt levels.<\/p>\n \u201cArrears rates on mortgages have actually been going down in recent years in Ontario and BC,\u201d says Lauren Haw, CEO of Zoocasa. \u201cThis is attributable in part to growth in the employment levels in these regions.\u201d<\/p>\n Canada\u2019s housing markets are now three pronounced divisions<\/strong><\/p>\n 2016 has thus far divided the housing markets across the country into three sections, based on average price growth:<\/p>\n