Mortgage lenders are not to blame for household debt
Whenever mortgage rates are cut there are negative reports that claim that lower rates leads and irresponsible lending are creating a household debt ‘time bomb’. However, writing in the Globe and Mail Rob Carrick defends the lower rates offered by mortgage lenders and banks saying that consumers should welcome they battling it out over lower rates. While critical of the loose lending policies of some he says that no one criticizes retailers when they cut their prices and home loan providers should be treated in the same way. Further defending the industry, this time on interest rates, Mr Carrick says that while lower interest rates have fuelled the housing market and helped increase prices, that is not the fault of mortgage lenders.