I Told You
Posted December 11th, 2009 in Mortgage Rates, Real Estate
It’s All Your Fault
There is a lot of finger pointing going on! If you are about to buy a house then you should know that they are pointing at you.
Carney’s Calliope
Mark Carney the head of the bank of Canada today steamed ahead uttering his soon to become famous I-told-you-so tune!
“Households need to assess their ability to service these debt obligations over their entire maturity, taking into account likely changes in both income and interest rates…”
Further, “financial institutions need to carefully consider the aggregate risk to their entire portfolio of household exposures when evaluating even an insured mortgage, since a household defaulting on an insured mortgage would likely be unable to meet its other debt obligations.”
Joining the Show
Not to be outdone, Finance Minister Jim Flaherty joined the Carney show waiving his finger in unison saying “People have to make sure that the mortgages they take out today either have a fixed rate or that they’ll be able to handle increases in that mortgage rate later on. That’s just prudent household management.”
*Disclaimer: Quotes Courtesy of Jeremy Torobin, The Globe and Mail. While believed to be accurate they are not guaranteed.
