Canadian finance minister Jim Flaherty is set to tighten rules in the country’s mortgage industry, according to two government officials familiar with the plan, as record activity prompts talk of a housing bubble.

Flaherty is slated to announce measures to ensure buyers can afford their homes even after interest rates rise from record lows.

Record home prices and sales prompted Stephen Jarislowsky, chairman of Montreal-based investment adviser Jarislowsky Fraser, to say last week he’s 'convinced' there’s a bubble in Canada’s housing market fuelled by government measures that encourage consumers to take on debt.