This is even more evident with the release of a recent Statistics Canada report that states that Canadian Household debt has reached a record high. With ever increasing debt levels and continued instability, more and more Canadians are in jeopardy of overextending themselves. So far, the Bank of Canada has held interest rates at a historical low, but there is speculation that interest rates will rise in 2012.
Efforts have been made to rein in debt, starting with changes to the mortgage rules. In January of 2011, the Government of Canada announced adjustments to the rules for government-backed insured mortgages. The maximum amortization period was reduced to 30 years. The maximum amount Canadians can borrow in refinancing their mortgages was reduced to 85% of the value of their home. Lastly, government insurance backing was withdrawn on lines of credits secured by homes, like home equity lines of credits. There was fear that the adjustments would hurt the housing market in Canada, but as we’ve seen, it’s been fairly stable around the country.
So what’s in store for the industry in the future? Debt reduction will continue to be a big topic in 2012. Technology and social media will continue playing a big part in creating competition in the mortgage industry. Our clients have access to more information than ever before and CENTUM Mortgage Professionals will be here to help you make sense of it all. CENTUM will continue to be an industry leader in providing their Network with tools and programs that will help our clients manage debt levels and become mortgage-free faster.
We are here to look out for your best interest.