It hasn’t been this easy to pay the interest on your mortgage in almost 25 years. Credit rating agency DBRS Inc. has been tracking our ability to pay loans since 1990 and says today we only need on average 3.7% of our household disposable income to cover the interest on those loans — the lowest percentage on the books. All this comes as Canadians continue to ramp up their mortgage debt, albeit at a slower pace. Mortgages outstanding were up only 5.5% year over year in January, 2014 from a year earlier but still reached $1.2-trillion in the first quarter. That’s a 202% increase since 1999.
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Source: Financial Post & CREA May 30, 2014