CTV says Ottawa is considering raising the minimum down payment for home buyers as well as reducing the amortization period in order to stop some consumers from taking on too much debt. (CP File)

Finance Minister Jim Flaherty said he’s considering taking measures to make it harder to obtain a mortgage to avoid households taking on excessive debt.

In an interview with CTV, to be aired this week, Flaherty said he’s watching the booming property market closely.

“If we see further evidence that there is excessive demand in the housing market or that there's an indication that people are taking on obligations that they will not be able to handle in the future when interest rates rise, then we will take some action," Flaherty said on Question Period.

Possible measures include raising the minimum downpayment, which currently stands at 5% or decreasing the amortization period from 35 years.

Record low interest rates have fuelled mortgage lending and property prices this year, helping pull the economy out of recession. The government and Bank of Canada is becoming increasingly concerned that consumers may not be able to meet debt payments once interest rates rise again.

Bank of Canada Governor Mark Carney has warned that household debt ratios at more than 140% pose a risk to financial stability.