Canadians managing mortgages despite soaring household debt

By Katia Dmitrieva Canadians may be shouldering near-record household debt but homeowners have been managing it better than those that 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…


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How will the rise in Interest rates effect us?

The Bank of Canada had hiked the interest rate for the first time in seven years by 0.25 per cent, from 0.5 per cent to 0.75 per cent. The increase in the interest rate will have effects on various stakeholders in the Canadian economy, including consumers and businesses. It must be mentioned that the U.S. Federal Reserve also recently increased the benchmark interest rate by 25 basis points from one per cent to 1.25 per cent. The increase in the interest rate will provide greater incentive to Canadians to save more. The higher interest rate will lead to higher income…


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