The low-interest rates have no plans of going away anytime soon, while the economy of Canada is likely to remain slow. This happens to be both a dilemma and a breakthrough for homeowners in Canada.
The senior deputy governor of Bank of Canada, Carolyn Wilkins made mention at a conference back in the UK saying the weak link in the world’s economy puts the Canadian growth at risk, with interest rates being low and growth being sluggish causing havoc on corporate investments and affecting the workforce market.
To add to what she had to say, she commented that “households could experience longer and more frequent periods of shrinking incomes, making their debts more burdensome.”
The financial system is likely to be affected by the low cost of borrowing which may possibly bring about greater credit risks. Ms. Wilkins gave an advice saying “adapt to the new reality of lower potential growth,” to both lenders and the population at large.