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.