Merrill Lynch cautions against being deceived by the apparent similarities between Canada's housing market now and the U.S. before its crash. Subprime lending accounts for less than 10% of the Canadian mortgage market, unlike that 20% in the U.S. prior to the crisis. Share of total mortgages that are delinquent for three or more months is a miniscule 0.3% in Canada, much lower than the U.S. pre-crisis figure of 2%. "Furthermore, Canadian borrowers aren't squeaking by with monthly payments," Merrill says. A whopping 38% of households surveyed by a mortgage industry umbrella group engaged in some action in the past year to pay off their mortgage faster.
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