What about the housing market – are borrowers over-leveraged? Here’s some information from credible sources
Brought to you by The Mortgage Centre, Sandra Lastovic and Chris Bisson
There have been a couple articles that have been published in the Mortgage Broker News recently that share some extremely valuable housing market information. There seems to be constant talk about our real estate market being in a “bubble” and this week the governor of the Bank of Canada addresses this issue saying “the country is not in danger of a hard landing.” He goes on to say “there are many other characteristics of a bubble situation that are not present”. Although the article acknowledges some areas are starting to see slow down, many are not-for example Toronto still saw a 17% rise in home sales since last year at the same time.
This article and Stephen Poloz, the governor of the Bank of Canada suggests that the rise can be attributed to first time buyers who are attracted to the low interest rates rather than people buying multiple properties as an investment for the future. This idea is also brought to light in an article The Fraser Institute’s Phillip Cross brings up in an article written by Jamie Henry for The Mortgage Broker News that reiterates that many people are living in debt, but the majority is “responsible debt” such as education, business or mortgage debt.