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Healthy Mortgage Debt in Canada

Despite concerns from mortgage professionals, the Bank of Canada says that the new mortgage rules are seeing success in reducing high-risk mortgage debt.

According to Mortgage Broker News' Ephraim Vecina, the Bank of Canada credits increased interest rates and the mortgage stress test with a sharp fall in mortgages taken out by "highly-indebted borrowers."

This effectively means that people with high debt and unsustainable finances are finding it more difficult to take out a mortgage, which ultimately reduces the chances of a 2008 style housing crisis from erupting.

However, the BoC notes that Canadian household debt is still at high levels. To learn more, check out the full article at mortgagebrokernews.ca.

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