Debt service ratio is essentially the ratio between your income and your debt payments. This ratio is important because it’s a simple way to measure how effectively you can handle your payments.
Interest in refinancing is accelerating significantly amid the COVID-19 pandemic, according to comparison site Lowestrates.ca.
“We have seen a huge increase in the number of consumers coming to our site to compare rates and see if they can save money by breaking their current mortgage and renewing early or refinancing,” said Justin Thouin, chief executive of Lowestrates.ca.
The site’s metrics showed that the volume of refinancing inquiries made through the site increased by 326% month-over-month in March, when the coronavirus first took hold of Canadian markets, according to CBC News.
In early June, Statistics Canada said that mortgage borrowing – and overall credit market activity – has grown along with a noticeable decline in debt-servicing costs.
As of the end of Q1, national credit-market debt was at $2.33 trillion, with $1.53 trillion in mortgage balances and $802.1 billion in consumer credit and non-mortgage loans. During the same time frame, the household debt-service ratio (DSR) stood at 14.67%, from the 14.81% in Q4 2019.
“One silver lining in [the latest] report was the decline in debt-servicing costs, with the DSR falling for the first time in more than two years as interest rates fell across a broad range of loans,” said Ksenia Bushmeneva, TD Bank economist. “In addition to lower interest rates, deferrals and other modifications of mortgages and other credit products also helped lower expenses related to debt servicing.”
Wondering what an overvalued housing market could mean for Canadians and investors? It isn't all doom and gloom, but it's important to understand what can happen.
For decades, we have counted on trades from other countries to bring their skills and expertise to help build our homes and infrastructure.
The US-Canadian land border is finally set to reopen on Nov 8th, spurring many snowbirds to once again make plans to head south.
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Toronto council approved an inclusionary zoning policy that will force developers to set aside a percentage of units for affordable housing if they’re putting up condos near transit stations.
Canada begins to emerge from the COVID-19 pandemic, the hopes are for positive economic growth, however, it seems pandemic effects may stick around longer than most anticipated.
The amount of the house you're acquiring will determine what your down payment should be. Here are the minimum and maximum requirements in Canada.
It seems that the rate of vacancies has begun to stabilize, though it’s still at a relatively elevated level compared to the pre-pandemic urban rental market.
More and more people are turning to rural properties for their lifestyle and investment opportunities. This Brantford realtor explains why you should too.
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