With the fear of interest rates rising more and more Canadians are opting to put more cash towards their homes, RBC stated May 20, 2011 according to The Globe and Mail. “Interest rates will likely soon start to rise again, leading to a period of steady increases in home ownership costs. This, in turn, will contribute to a flattening in Canadian housing demand going forward,” said Mr. Hogue in a statement. “We could experience some turbulence this spring and summer, given that new tighter mortgage lending rules in March and April likely shifted home buying activity to earlier in the year.”
One commenter pointed out that while home ownership is a great thing for people with the resources to do it, but it can be very stressful if you are maxed out and struggling to make the payments. If your home is eating up over 50% of your income how are you going to afford to retire, put your children through university, etc.
