Toronto, Ontario (PRWEB) November 19, 2012
Toronto, Ontario: The mortgage policy changes that were implemented in the summer of 2012 have affected the Canadian economy quite negatively. The housing market is one of the major contributors in the economy along with the consumer spending and government sector.
The recent policy changes have had an overall impact on the current economy. The homebuilding industry predicts a 17.5% dip in its business. This will drastically affect the economy as well as all the other sectors associated with home construction.
David Madani, a Canadian economist based in Toronto states that the housing market is something economists need to be concerned about. The Reuters Poll contains his forecasts which predict a 25% price dip in homes as well as a decline in housing starts to 150,000 by 2013. This has caused chaos among builders who now have to deal with several unsold houses due to a falling demand in homes and a lack of interested buyers.
Mr. Madani also highlighted the fact that the housing bubble has one key issue in common which is overbuilding of houses. He emphasized on the fact that they had been building more than 200,000 for many years which they now realize has exceeded demographic requirements.
According to mortgage expert Marcus Arkan, “The policy changes were meant to slow down the mortgage market in Canada and reduce the intense debt burden currently on the economy. Even though the economy will face a declining trend for the next few years, however, the looming threat of the housing bubble will subside making the ultimate effects of this change positive.”
Mr. Arkan correctly observes that the debt burden in Canada will ease due to these policy changes. With artificially low interest rates on mortgages, many people could easily purchase a house on a mortgage which was increasing default risk and debt in the economy. The recent recession had also unstabilized the economy and increased the default risk due to downsizing alternatives taken by many employers.
He also believes that these changes will help prevent the housing bubble burst that occurred in the United States causing devastating effects on their housing market and their economy which the US will have to suffer for the next many years until it completely recovers.
To know more about the current mortgages being offered, visit http://www.syndicatemortgages.com
About Syndicate Mortgages Inc.
Syndicate Mortgages Inc. is one of the leading Canadian mortgage brokerage firms. Founded in 2008 in Ontario, the company specializes in residential, commercial and construction financing across Canada. With years of experience and expertise in the mortgage industry, and access to an array of lending institutions across Canada, Syndicate is known for finding the best mortgage rates for their customers. Syndicate has branch locations across Canada. For contact, please use the following details.
Syndicate Mortgages Inc.
Toll Free: (888) 646-1062
Email: info (at) smibroker (dot) com