The Financial Post reports in its Thursday edition that the Office of the Superintendent of Financial Institutions is raising red flags around growing risks in the mortgage market as interest rates rise and home prices cool. The Post's Stephanie Hughes writes that while the OSFI did not announce new measures when it updated its residential mortgage underwriting info sheet this week, it emphasized the need for readiness to confront these emerging risks. The reports said: "Federally regulated financial institutions need to ensure that they are prepared to handle the potential implications of lower housing prices and higher interest rates. In particular, the level of loss experienced by lenders not only depends on the likelihood of a default, but also how much of the loan the banks would lose in case of a default." OSFI pointed to high levels of Canadian household debt, which stood at 182 per cent of disposable income during the second quarter this year, as another potential risk. OSFI noted that a combination of these record debt levels, persistently high inflation, which clocked in at 6.9 per cent in September, and further Bank of Canada rate hikes would strain the ability of Canadians to make mortgage payments.