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Canadian home prices will drop 10% to 15% “over time” as mortgage rates rise and supply swells, said Sadiq Adatia, chief investment officer of Sun Life Global Investments Inc.

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Low interest rates are helping to boost property markets across the globe and Canada is no exception, says a new report from the Bank of Nova Scotia.

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However, future gains in Canada are no guarantee, the report from economist Adrienne Warren says.



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“I don’t think the demand is going to be there for housing,” Adatia, who manages about $6.4-billion at Sun Life Global, a unit of Sun Life Financial Inc.

The recent upswing in housing activity is being driven by buyers rushing in as banks raise borrowing costs, Adatia said Thursday at the Bloomberg Canadian fixed-income conference in New York.