Ariana Leroux Mortgage Blog

  From TMG, mortgage blog... Thurs Sept 13th, 2012 Is household debt a threat to our economy? Here are the facts: Canadian household debt is indeed equal to 154% of disposable income  The housing market is softening and prices are going down in many areas of the country Canadians will be impacted by higher interest rates Even given these facts; it’s unlikely that Canada will experience a financial crisis. Household debt has been increasing steadily over that past 30 years as interest rates continue to decline but, for the most part, Canadians gear their borrowing to what they can afford.  Jobs are holding steady and business is confident about future prospects. So, lower interest rates mean less money goes to servicing debts. In accumulating debt, Canadians also have a large asset, namely their homes. And although some in the financial community are concerned about the massive debt, Eric Lascelles, chief economist at RBC Global Asset Management...