Canadian Mortgage Holders Have Reasons to Be Optimistic

Bank of Canada, Mark Carney, said recently that the recession is over. Many experts quickly came to temper their optimism with a little dose of reality. Yes, he said, the economy may have experienced a marginal growth, marking the end of a technical recession, but there is still a long way to cite go.Many increase in unemployment as a sign that the economy is still struggling. Manufacturers report significant stocks and maintaining the freeze on recruitment. Some manufacturers also report that the value of your current orders has decreased since the beginning of this year.Given negative news, how mortgage holders feel? Is the unemployment rate will lead to assignments or performance? Is it more difficult for borrowers to get money they need? In April 2009, the Canadian Association for Accreditation of mortgage advisers (CIMBL) has prepared a report on the Canadian mortgage market. Entitled "The market for residential mortgages in Canada during difficult times, the report is actually good news for mortgage holders in Canada. Although the authors acknowledge that there still could be problems in Canada, the risks are much lower here than in the U.S.. The issues raised in support of this statement are: the United States, the problems were caused by large increases in mortgage rates. In Canada, rates have remained at historic lows. In fact, the report predicts that 75% of mortgage holders in Canada are reducing turnover rate mortgage at its next. Even those whose growth rates are more minor and manageable. The rate of increase in unemployment in Spain is worrying, and contributes to the risk of mortgage problem. The report found that among homeowners with a mortgage that one or more primary employees lost their jobs, 14% are concerned about being able to make their monthly mortgage payments. But unlike the United States, most have accumulated substantial equity in their homes that can be used to help when needed. The panic selling has become a problem south of the border, but the report does not provide the same trend is happening in Canada. Yes, homeowners who lost their jobs could sell their home to help manage, but it is clear that the panic seen in parts of U.S. Canada tend to have home equity more than Americans, which means that they also have more options when it comes to managing with less income. Unlike the U.S., where negative equity (where the mortgage exceeds the rental value of housing) is a problem, only 2% of Canadian homeowners are more on their mortgages is sadness. Mortgage lenders and insurers in Canada are more willing to work and help borrowers in distress. In general, conditions that have caused problems in the United States do not exist in Canada. Here you have some owners who are at risk of losing their homes, but for the most part, homeowners in Canada are much safer pit Overall, the outlook for mortgage holders in Canada is much better than for below the 49th parallel. And for those who need help, mortgage brokers can offer a range of home equity and affordable strategies for debt consolidation to help them weather the storm.