Newly released data from the Bank of Canada shows new mortgage rules and higher interest rates – are improving the quality of new mortgages.

The top bank’s analysis shows that tougher qualification tests have reduced the share of new high-leverage, insured loans to six per cent in the second quarter of this year –     from 20 per cent in late 2016.

And the share of new uninsured mortgages has fallen to 14 per cent – compared with 20 per cent a year earlier.

Senior bank deputy governor Carolyn Wilkins says Canadian household debt remains very high – but the better quality of mortgages will put the economy on a more-solid footing – to withstand any future economic shocks.