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Canadians are Warned About Debt by the Prime Minister

May 21, 2015

Stephen Harper has a few words to share when it comes to mortgage and debts

The government has started to take notice as many homeowners are starting to be overexposed to mortgage debt. Prime Minister Harper recently warned Canadians to be very careful as to not assume that it is okay to rush into buying a home since the market seems stable. The high consumer debts levels are becoming more prevalent as the Canadian housing market remains active.

Harper told reporters while making a appearance in Windsor, “Now, all of our data indicate that – both for lenders and for borrowers at low interest rates – this debt is very manageable. But there are some people who are overexposed, so we encourage people to exercise caution in terms of their borrowing.”

While interests seem low, Canadian house prices have been at a record high nationally especially in the Toronto and Vancouver area. Some other markets have been cooled down drastically such as in Calgary. Home prices in nine of Canada’s eleven major cities have passed their peak, according to the Teranet house price index.

Still, national house prices have risen 37.8 per cent since June 2009, according to the Teranet house price index, when the global financial crisis stalled price gains. Vancouver prices are up 42.3 per cent and Toronto prices are up 59.2 per cent in the same period. You can find more information regarding the Teranet-National Bank house price index here: http://www.housepriceindex.ca/