The Globe and Mail reports in its Thursday edition that the Bank of Canada says house prices may be overvalued by as much as 30 per cent. The Globe's Barrie McKenna writes that the BOC says Canadian house prices have been overvalued by at least 10 per cent since 2007 and may now have overshot by anywhere from 10 per cent to 30 per cent, relative to incomes and interest rates. The BOC report expressed concern that high prices are pushing many Canadians to take on too much debt. Forty per cent of all household debt in Canada is now held by borrowers who have a total debt-to-income ratio of more 250 per cent. The Canadian average is 164 per cent, a record high. These heavily indebted households now make up 12 per cent of all borrowers, double their share in 2000. A recent Canadian Imperial Bank of Commerce poll found that eight out of 10 Canadians are unconcerned about their debts and 85 per cent are taking advantage of low rates to trim their burden. The BOC anticipates a "soft landing" in housing. The BOC sees the same risks to Canada's financial system as it did in June -- the possibility of a housing crash, an interest rate spike, financial stress in Europe and a banking crisis in China.