Thursday, February 06, 2020
Does an increase in interest rates lead to more mortgage defaults in Canada?
Fears that rising interest rates could make it harder for Canadian to make their mortgage payments was one of the motivations behind the tightening of mortgage regulations in Canada. The changes included, among others, the stress test, shortening of the amortization period and new taxes on foreign homebuyers. Policymakers in Canada were no doubt influenced by the experience in the United States, where a boom in subprime mortgages contributed significantly to the Great Recession in 2008. Read entire article...
Posted by Rachelle Czartorynskyj Amp, Mortgage Broker at 1:51 p.m.