Will Canada undergo its own housing crisis?
Michael Cimmino, CAIA, is the author of the January Member Poll. He is also featured in this month’s Smart Moves.
It was recently revealed that household debt as a percentage of disposable income in Canada surpassed the United States for the first time in more than a decade. This increase also coincides with a rise in the average mortgage amount for a Canadian household. After receiving much praise for successfully navigating the recent financial crisis, do you think Canada will follow in the steps of the United States and other peripheral European countries?
Yes. The increase in interest rates (3 times since June 1) will only increase the cost of mortgage servicing.
12%
No. The government will continue to take preemptive steps, such as strengthening rules on refinancing and down payments.
35%
Yes. The government’s tightening of rules for government-guaranteed mortgages will force borrowers into the private marketplace.
13%
No. Canada will avert a housing crisis and benefit from a general economic recovery in the United States.
41%
Member Spotlight
Derek Drummond, CAIA, was named a Rising Star of Public Funds for the 11th Annual Public Pension Fund Awards for Excellence.