The Finance Minister is now warning he will step in with measures to cool off the hot Real Estate markets by tightening  rules for borrowing, increasing minimum down payments and shortening the duration of mortgages.

Government officials are worried homeowners are now taking on more debt than they can afford and when interest rates rise as they always do, these same homeowners will face a painful correction.

Lending rates have been low for most of 2009 and the Bank of Canada has said they will keep lending rates low until June of  2010.

By changing the down payment rules and amortization periods, the Bank can regulate the Real Estate market without increasing borrowing costs for other businesses and consumers.

In the summer of 2008 The Bank of Canada said it would no longer insure zero-down-payment mortgages or any mortgages with amortization period longer than 35 years.

November's Toronto Resale  Housing report was positive and will most assuredly end the year with Residential housing prices similar or above pre-recession levels.