Maclean’s warns of impending housing collapse in Canada
Posted Feb 23, 2012 7:51 am.
This article is more than 5 years old.
A cover story in Maclean’s magazine says Canada’s debt bubble is even worse than in the U.S. before the housing crash.
Home owner debt as a result of Americans borrowing against their mortgages was a major component of the meltdown.
And article author Tamsin McMahon says the same thing is happening in Canada.
“We’re actually withdrawing a lot more money from our homes,” says McMahon. “A lot of that came from the home renovations tax credit where many Canadians are borrowing against their mortgage to make renovations; a lot of it being encouraged by the government.”
The article warns many Canadians won’t be able to support their payments when mortgage rates begin to rise.
