Canadians Are Managing Their Mortgages Despite Soaring Debt Load
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Borrowers with mortgage less likely to default, go bankrupt
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New rules will help insulate them from rising interest rates
Canadians may be shouldering near-record household debt but homeowners have been managing it better than those than don’t own property, according to the country’s housing agency.
Mortgage delinquency rates and credit scores improved in the fourth quarter of 2016 from the third quarter and those with a home loan were less likely to default or file for bankruptcy, Canada Mortgage & Housing Corp. said in a report Tuesday.
New financing rules to tighten access to insured mortgage credit and ensure new homebuyers have a sufficient buffer amid higher interest rates were introduced in the quarter which “should help insulate households from rising mortgage-service costs,” according to the report. The Bank of Canada raised its benchmark interest rate last week as the economy picked up…
Canadians Are Managing Their Mortgages Despite Soaring Debt Load
