Rising Interest Rates
How will this effect you and your mortgage?
Here is a recent article from The Globe and Mail (January 24, 2018) discussing the changes that will occur as interest rates increase.
The Bank of Canada is raising interest rates. The economy is strong and unemployment rates in 2017 were at the lowest rate since the mid 1970s. The raising of interest rates is seen as a vote of confidence that the Canadian economy is healthy.
But what do higher rates mean for homeowners and mortgage holders? Low-interest rate environments have encouraged Canadians to take on more debt, and stats indicate that 7 to 10 % of households are living beyond their means.
The potential impact of the real estate market is great. Along with the new stress test regulations, this means that fewer households will qualify for a new mortgage or even renewals of existing ones. Higher borrowing rates may lead to a reduction in home sales this year.
To read the full article from The Globe and Mail, Click Here.