Because of the strong Canadian housing market, the overall residential mortgage debt was reported to exceed a record $1 trillion for 2010.
According to the chief economist of Canada's mortgage industry association, the housing market should show more moderate growth going forward.
Compared to last year, the total sum of outstanding Canadian mortgages has climbed 7.6 per cent.
There are many reasons why there is a current mortgage boom in Canada. Climbing real estate prices allow for the financing of large and one time expenses. Attractive record low interest rates mean lower financing costs on home equity loans and lines of credit.
The new HST rules on new homes may favor the home resale market, especially as builders have already scaled back in recent years.
Recent hikes in the lending rate by the Bank of Canada may serve to help moderate real estate price growth. The rise in interest rates in Canada is also sparking a higher Canadian dollar value versus the Greenback.
Recent preference to fixed rate mortgages should have more Canadians comfortable in the face of rising interest rates, at least over the next five years.
A healthy mortgage market, stable real estate prices along with increases in commodity prices for a nation that is driven by commodities, and a vibrant economy
has helped Canada emerge as one of the stablest countries in the face of global economic uncertainty. This in part is contributing to the recent
rise of the Loonie now at parity with the U.S. dollar.
Although the Bank of Canada seems to be taking a more wait-and-see approach instead of marching forward with more interest rate increases in the short term,
the Canadian real estate market is still doing surprising well and has weathered the recent storm with flying colours.
For home equity loans, home equity lines of credit or other Ontario mortgages contact the Mortgage Medics.
