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Healthy Mortgage Debt in Canada

Posted by Sherwood Mortgage Group on 20 November 2018
Healthy Mortgage Debt in Canada

Despite concerns from mortgage professionals, the Bank of Canada says that the new mortgage rules are seeing success in reducing high-risk mortgage debt.

According to Mortgage Broker News' Ephraim Vecina, the Bank of Canada credits increased interest rates and the mortgage stress test with a sharp fall in mortgages taken out by "highly-indebted borrowers."

This effectively means that people with high debt and unsustainable finances are finding it more difficult to take out a mortgage, which ultimately reduces the chances of a 2008 style housing crisis from erupting.

However, the BoC notes that Canadian household debt is still at high levels. To learn more, check out the full article at mortgagebrokernews.ca.

Author: Sherwood Mortgage Group
Tags: News