14 December 2010
In addition to it, the Bank of Canada Governor Mark Carney shared his concerns about household debt levels. Let’s not forget that, according to the Statistics Canada report, in the third quarter the Canadian household debt level was even higher than in the United States.
Such a long period of historically low mortgage interest rates made Canadians get more mortgages than they can actually afford. As a result, it’s the first time in 12 years that Canadian households debt-to-income ratio is higher than in the United States. The third quarter showed record 148%.
If you are on the border with only 5% available for downpayment and won’t be able to qualify on 25years amortization, it might be a good idea to get pre-approved for up to 6 months. It will provide you with the protection from potential changes and rate hikes.