The Canadian Government seems to see no evidence of a bubble of housing or household debt, but even if there exists once, according to Finance Minister Jim Flaherty, mortgage can be made harder to gain and the situation can be put under control.

Under any circumstances, Minister Flaherty said that the Government is not close to taking any drastic measures and is currently sticking to a "watch and monitor" approach in association with the Bank of Canada.

"If we see -- which we have not seen -- but if we see clear evidence of an upward bubble, particularly with respect to insured mortgages, then we have some tools available which we've used before and we can use again", Mr. Flaherty said.

The Minister has also stressed that the high activity seen in the housing sector currently should not come as a surprise to anyone, especially since the interest rates are at an all time low and people have managed to hold back on big investments all throughout the recession and now want to put in money in lucrative places as the country emerges from the crisis.

While making it clear that no imminent steps are being planned, Mr. Flaherty shared that if required, actions would be taken and the situation will be effectively handled.