Will Dunning, Economist has done a great job capturing the elements of rising interest rate risk for Canadians. In my experience on the front lines, I agree with all comments provided in this report. Will does a great job of understanding how the mortgage market in Canada is priced and the impact on consumers. The prudence of Canadians during a recession can not be lost. I would suggest that the large majority of Canadians have done a good job of preparing and protecting themselves from increased debt loads and servicing debt loads. We must continue to educate consumers of the impact of higher rates to ensure this is not lost.
For details on the CAAMP Mortgage market report, please follow this link.