There’s good news and bad news in this rundown of latest report from the Canadian Association of Accredited Mortgage Professionals.
The bad news is that CAAMP uses the report to outline what might happen should interest rates be raised to a hypothetical 5.25% from their current level. In that scenario, 475,000 mortgage holders would face difficulties making payments, in addition to the 375,000 already having a hard time.
The good news, though, is right in the report’s title—“Prudence paying off for Canadian Mortgage Borrowers.” We’re a cautious bunch, with 16% of Canadian mortgage holders recently taking advantage of low interest rates to increase their regular payments. 13% have made recent lump sum payments, we’re taking shorter amortization periods, and we rarely miss a payment.