Will Interest Rates Cause Mortgage Defaults In Canada?

<p>The team behind Toronto's best <a href='https://cannect.ca'>home equity lenders</a> is back with another edition of Make Money Count! In this episode, Marcus is joined by Rina DiRisio, a <a href='https://rina.ca/'>skilled real estate agent</a> with 30 years in the industry.</p> Interest Rates <p>The Canadian housing market has been a topic of much discussion and debate, with concerns about affordability, supply, and demand at the forefront of many conversations. Marcus and Rina highlight some of the key issues currently facing the market, including worries about supply and the impact of interest rates. Did you know 20% of all mortgages currently held by banks are not servicing the interest on their mortgage? This could lead to a greater supply issue if banks become worried about holding the line. This concern is compounded by the fact that many of these mortgages have amortization exceeding 35 years. Which could lead to negative equity positions for homeowners.</p> Housing Supply <p>These concerns about supply are not unfounded. Higher rates could lead to an increase in mortgage defaults, which could in turn lead to a surplus of supply. This could be particularly problematic in areas where there is already a high level of inventory on the market. Marcus and Rina's conversation highlight the delicate balance between supply and demand in the Canadian housing market.</p> <p>While demand for homes remains strong, there are concerns about the ability of the market to continue to supply enough homes to meet this demand. This is particularly true in areas with high levels of inventory. Where rising interest rates could lead to a decrease in demand and an oversupply of homes.</p> What's Ahead? <p>One potential solution to these issues is to increase the supply of new homes on the market. This could be achieved through various measures, including changes to zoning laws, increased incentives for developers, and the creation of new affordable housing units. By increasing the supply of homes on the market, it may be possi