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Mortgage Broker News | 11 Dec 2014, 05:58 AM Agree 0
The Bank of Canada is warning that 1 in 8 households, about 12 per cent, are at the greatest risk from a rise in interest rates due to their levels of debt.
  • Angela Wong-Liao - Invis | 11 Dec 2014, 11:53 AM Agree 0
    For almost two decades, interest rates have been low, especially now plus the mentality of the younger generation, the "NOW" generation and easy access to credits, it is so easy for the "NOW" generation to accumulate debts.

    With the on-going appreciation of real estate since 1996, Canadians are relying heavily on the equities of their houses. I have clients who consolidated their consumer debts every other years from the equity of their houses.

    The fact is that it is very risky as when interest rates increase and house value dropped, some Canadians could be very stressful and very risky to lenders as they could be "NEGATIVE NET WORTH" and the amount of mortgage over the value of their houses changes from secured into unsecured status.
  • Kath | 11 Dec 2014, 12:49 PM Agree 0
    This country is great. One of the last places in the world with Utopian house values. But who is going to support casualties of Canadian Real Estate circus?
  • Rudy Haugeneder | 11 Dec 2014, 12:56 PM Agree 0
    Now that the Bank of Canada has warned there could be up to a 30% decline in home prices due in part to steeply falling oil prices and royalties the nation and provinces depend upon, especially the West including oil producing BC and Saskatchewan, the budget hole Alberta's premier now forecasts may be overly optimistic.
    This 30% correction should have happened at least five years ago. Because it was delayed, I suspect a 40% drop can be expected and people with mortgages should drop their home prices by a tenth and sell -- before they get stuck in a situation where many will just drop their keys on the table and move into their parents' homes.
  • Kath | 11 Dec 2014, 01:12 PM Agree 0
    I wouldn't hesitate to suggest 50% in some cases, Ruddy. This will be good for all those who held back and stuck to real, sustainable values and for all our kids. The rest of the herd will suffer because of their own weakness, ignorance and greed along with ill leadership of this country. http://www.vancouverobserver.com/opinion/who-exactly-crazy-here-mr-harper
  • Ron Butler | 11 Dec 2014, 01:18 PM Agree 0
    Garth Turner must be dancing around his desk today. Something he has been wrong about for four years he may actually be right about in the next three.
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