Will Mortgage sky rocket? if you listen to the media its as usual all doom and gloom. Reality is that we have a perfect storm. With Canadian Dollar appreciating so strongly, imports will become cheaper and that will translate to lower retail prices. with HST kicking in, most Canadians will cut back a little on spending. With higher debt load and higher mortgage rates and stringent lending guidelines, demand for housing losing steam and cost to carrying a home will cost more. all these factors will lead to a fairly significant slowdown in consumer spending. If thats the objective of Bank of Canada. Raise rates to keep inflation and spending under control… well their job has been done, so is there a need to raise rates? Probably but slowly.
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