Jared Dillian told Mauldin Economics that with average national home prices above $500,000, average income of $40,000 and a debt-to-income ratio of 165 per cent, Canadian households are close to “extreme bubble territory”.
Dillian is not the only economist calling for a bubble but financial institutions have stressed that the quality of their mortgage portfolios is generally of higher quality than those in the US when the bubble burst; and that their finances are well placed to cope if there was a significant correction.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
Investment Hot Spots:
Adstock, Rothesay, Saint-Raymond, East Port Medway, Rolla
A former executive of Lehman Brothers says that Canada’s housing market is building to a huge bubble surpassing that in the US when its bubble burst.