Maybe Canada wasn’t in a housing bubble after all

It turns out that referring to Canada’s housing market as a bubble may have been an exaggeration.
Brian Porter, Bank of Nova Scotia’s CEO recently stated, “Bubble is perhaps the most overused word since the global financial crisis”. He goes on to add; “Canadian consumers have a conservative attitude towards debt, and their household balance sheet including other assets is in very good shape”.
Last month, Canada’s unemployment rate hit 6.8%, plummeting to its lowest rate in 6 years. Plus, we saw 74,000 new jobs created across the country.
After being ridiculously low for several years, interest rates are still at historically low levels. Some analysts predict that the Bank of Canada will start raising rates next year, causing mortgage rates to rise, but for now, it’s creating a consumer-friendly environment.
A good job market and low interest rates means more confidence in the market with Canadians. As a result, Canadians are paying down their mortgages more quickly, borrowing to consolidate debt, and investing in home renovations. Did you know that the Bank of Montreal reports that more money was spent renovating Canadian homes than building new ones during the 12-month period ending this last June?
As Mortgage Alliance professionals, we can work with you to explore your options to either save money or use it wisely to achieve your goals. The right advice can make all the difference.
Contact us today.