Why Mark Carney’s speaking to more than you and your neighbour

Mark Carney rarely speaks without a clear purpose.

So when he warned ominously that Canadians have too much debt and need to change their behaviour, who was he talking to?

You and your neighbour? Not really.

Imagine you’re shopping for a house in Vancouver – the country’s most overheated real estate market. The average house price is $660,000. You figure out what cash you have available for a down payment, look at your monthly disposable income, shop around for the best interest rate, and then you figure out what you can afford.

Maybe you plunk down $165,000, and take out a 25-year mortgage for the rest at an annual interest rate of 4 per cent. Your monthly payment would be $2,612.

It’s doubtful you’d look to the central bank Governor for sage advice. Your father, maybe, but not Uncle Mark.

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