And we will watch whether people buying houses are taking on outsized debt relative to their income. We are not back to the frothy housing markets we saw in 2016, and we expect the bounceback in housing to dampen. But if too many Canadian households start to become dangerously over-leveraged, policy-makers have several macroprudential tools they can use.
Our experience with the mortgage-interest stress test shows how effective these tools can be. The bottom line is that the private and public sectors together need to be acutely aware of financial system risks and vulnerabilities as the economy recovers.