Call Marg: 705-446-1762

The warnings are come out rather loud and clear.  Interest rates will head up in 2010.

In reference to monetary and fiscal stimulus, Bank of Canada Governor Mark Carney warned consumers on December 17th, that they need to watch their debt levels as interest rates rise in the coming months.  “Although we expect the recovery to be gradual and protracted, these measures are working.  Ordinary times will eventually return and, with them, more normal interest rates and costs of borrowing.”  He expressed concern about consumers ability to carry their debts when rates inevitably go up.

It would appear he is not the only guy up there in Ottawa thinking about this.  Finance Minister Jim Flaherty said during CTV’s question period that he may soon impose measures that make it harder for Canadians to get a mortgage.  He said he is considering a few options to cool down the heated housing market including legislation to shorten permitted amortization periods down from the present 35 years to something less and, to increasing the minimum required down payment over the current  5% level.

Clearly, he is worried that people will not be able to manage their debt obligations WHEN interest rates rise as the recession fully subsides.

Sadly, I suspect Mr. Carney and Mr. Flaherty don’t have to worry too much.  Once July 1st and the HST kick in, things will right themselves quickly and more dramatically than they  may expect.  Yes, 2010 will be an interesting year.

Related Post
Early Mortgage Renewal May Beat Rising Interest Rates

Monthly E-Newsletter

Marg Scheben-Edey

Real Estate Broker
Market Value Appraiser - Residential
Accredited Green Broker™
(designated by the National Association of Green Agents & Brokers)

RE/MAX four seasons
realty limited, Brokerage
Each Office Independently Owned & Operated
67 First Street, Collingwood L9Y 1A2

Contact Marg

 Direct: 705-446-1762

Prefer Text? 705-446-5066

Email Marg

© Copyright 2017 All Rights Reserved.

Privacy Policy | Sitemap

Get Marg's Newsletter Delivered to Your InboxMonthly

Hey, it never hurts to know more about the local market and the goings on, does it? Stay “in-the-know” about the South Georgian Bay real estate market as well as local news, great new businesses and other fun stuff. At least you’ll have some impressive local trivia at the next cocktail party! Now, I just need a little info from you. (This information will never be shared – I promise!)


Pin It on Pinterest