Canada moves to curb housing bubble

OTTAWA: The Canadian government announced Friday a tightening of mortgage rules to curb overspending on homes in a sluggish economy that could collapse with the burst of a possible housing market bubble.

Finance Minister Bill Morneau unveiled the increase in minimum down-payment for government-backed mortgages from five to 10 percent for homes priced over Can$500,000 (US$365,000) to address “potential future vulnerabilities in our housing sector.”