The following article discusses how debt in Canada is rising. This should be no surprise. Debt has never been cheaper. On a variable rate mortgage, for example, you could be paying as low as 2.25%. These are record lows! I'm sure when mortgage rates were closer to 20% debt was pretty low. It just makes sense. This isn't surprising.
The issue will be when the interest rates start to rise. They are expected to rise in the near future. The government has been taking steps to help curb people from over-extending themselves on mortgages. This is done to help prevent a housing crisis in Canada similar to the one that has caused the recession in the United States. If people can't afford their mortgages, they will panic and try to sell to save face. This is the reason that mortgage rules continue to get tougher and tougher.
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