Does this not look like a bubble ready to burst?

From the Vancouver Sun:

Just less than half of B.C. households could comfortably afford their homes if interest rates were to climb by just two percentage points, a new survey has found.

This study in part seems to be BMO trying to attract mortgage customers. It later goes on to mention that:

According to BMO Economics, interest rates are expected to increase beginning next year. Andrew said he wouldn’t be at all surprised to see a much larger rate increase — of six or seven percentage points — in five years time.

I'm guessing a 6-7% interest rate would cause some short-term pain, but probably not be a bad thing for the economy in the longer run.