Minister Flaherty listened to industry experts to make changes today. There will be little impact for responsible Canadians looking at home ownership. He made a good decision by not changing down payment requirements as this would have hurt the housing market. Rates will increase at some point in time and we all need to be prepared. Here is today’s announcement.
Mark Carney, the governor of the Bank of Canada was in Winnipeg today sharing the message of the economy and financial outlook for Canada. He finished his speech with a comment about his comment about “target inflation” of 2% being the key for interest rates. Through the discussion period he reiterated the strength of the mortgage and housing market in Canada and the need for Canadians to manage their household debt load.
Pending any other unforseen financial circumstances, inflation below 2% should continue to hold rates steady, no need to panic yet, but the message is clear, listen to inflation rates for clues on rate increases.
The attached recent article in Marketplace Jan/Feb 2010 is great information.