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A real estate sign that reads "For Sale" and "Sold Above Asking" stands in front of housing in Vaughan, a suburb in Toronto, Canada, May 24, 2017. (MARK BLINCH/REUTERS)
A real estate sign that reads "For Sale" and "Sold Above Asking" stands in front of housing in Vaughan, a suburb in Toronto, Canada, May 24, 2017. (MARK BLINCH/REUTERS)

Debt-laden homeowners face threat of rising interest rates Add to ...

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An economic growth spurt is bringing the prospect of higher mortgage rates at a time when many Canadians in the country’s largest cities are stretching to afford homes.

Some analysts expect the Bank of Canada will raise the rate it charges financial institutions to borrow money overnight this fall after the central bank’s No. 2 executive gave an upbeat assessment of the economy, saying growth has returned to most industries and regions. An increase in the overnight rate would immediately raise the cost of variable-rate mortgages and home-equity lines of credit.

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