When I originally wrote this article in 2012, Canada had come out
of the 2008 recession and the economy was running on all cylinders.
Mortgage arrears had started to move down to their traditional are
of.30 of 1%. While most of Canada is doing well, Alberta is not. Of the
100,000 layoffs in the oil and gas industry, 59,000 of those layoffs
have been in Alberta. However, despite the uptick in bankruptcies, mortgage arrears have not gone up! They actually dropped in 2014 to 27% but they have started to go up as of January 2015. and sit at .30% which is where the rest of the country usually is when there isn't a recession and the economy is doing well. This is proof that mortgage underwriting is prudent and takes into
account downturns in the economy. amd it's good news for the housing
industry in particular and Canada as a whole.
(My 2012 article starts here)
Mortgage arrears data came out today. A very reassuring trend is developing. Mortgage arrears are decreasing. Arrears is when you are behind on your mortgage payments by 3 or more months. This is usually a sign of financial distress. Illness, loss of a job , or losing your overtime hours can all create stresses in a familiy's finances.
The graph here shows that while Alberta enjoyed low mortgage arrears in 2008 of .30% or 1/2 of 1% , this number "rocketed" up to .84% during the past couple of years. Down arrears are trending downward. This is a good sign of a recovering economy. People are back to paying their bills and mortgages on time. One thing that is helping is that people are renewing their mortgages are much lower rates today. If you would like to explore the option of renewing your mortgage early contact me to discuss the different ways I can help you.
(My 2012 article starts here)
Mortgage arrears data came out today. A very reassuring trend is developing. Mortgage arrears are decreasing. Arrears is when you are behind on your mortgage payments by 3 or more months. This is usually a sign of financial distress. Illness, loss of a job , or losing your overtime hours can all create stresses in a familiy's finances.
The graph here shows that while Alberta enjoyed low mortgage arrears in 2008 of .30% or 1/2 of 1% , this number "rocketed" up to .84% during the past couple of years. Down arrears are trending downward. This is a good sign of a recovering economy. People are back to paying their bills and mortgages on time. One thing that is helping is that people are renewing their mortgages are much lower rates today. If you would like to explore the option of renewing your mortgage early contact me to discuss the different ways I can help you.
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