As an example of my comments above, the Canadian government is attempting to reign in the real estate market not by raising interest rates, but by making it harder to qualify and harder to access your equity as a personal piggy bank. For example the have gotten rid of 30 year ammortizations, increased the down payment required, you now have to qualify based on the 5 year rate instead of the floating rate regardless of which you chose ...and more. Hopefully a soft landing for Canadian real estate, not a American style crash.