3 March 2011
Let’s not forget that the personal spending on consumer goods and services represents 58% of Canadian gross domestic product, so this drop may cause another recession.
The report calls for stricter mortgage qualification standards, such as a higher test interest rate or shorter qualifying amortization. These parameters can be used in order to determine the maximum mortgage value a consumer could afford. It means if the consumer then wants to chose a longer amortization period, it will be possible only through reducing monthly payments.”