The average Canadian's debt-to-income ratio amounted to 145% after the home prices hiked five times, the average persons' after-tax income.

The report from Vanier Institute said that the mortgage arrears were up by 50%, although the absolute number of arrears was still ultra-low by international standards.

The media suggests increase in defaults. The housing market has seen prices and sales activity rise rapidly.

Finance Minister Jim Flaherty tightened mortgage rules. Mr. Flaherty's changes apply to any mortgage backed by Canada Mortgage and Housing Corp.

But Craig Alexander, Deputy Chief Economist at TDBank Financial Group, said that the practical effect of changes to CMHC-backed mortgages was that the lenders tended to extend at least some of those provisions to all mortgages.

The trend could end up softening the sharp price increases that have hit many cities.

The Canadian Real Estate Association reports a jump of nearly 20% in the average selling price of a home in Canada, a little more than $337,000.

Investors will now have to put up 20% of the purchase price to get a government-backed mortgage, in an attempt to prevent a homeowner from carrying a mortgage worth more than the home itself.