OTTAWA–First-time homebuyers and others taking advantage of record-low interest rates are likely to face tighter mortgage conditions on Ottawa's orders if housing prices keep booming, Finance Minister Jim Flaherty is warning.

In a move with potentially wide repercussions for the economy, he said Ottawa will be forced to intervene if clear evidence of a speculative housing bubble emerges in the months ahead.

"If there's evidence of an asset bubble – which there isn't right now, but if there is – we've acted before and we would act again," Flaherty told the Toronto Star on Monday. "Mortgage money is really inexpensive right now and there's lots of it available and mortgage interest rates are at historic lows.

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