As Thanksgiving weekend winds down here in Canada, there’s a good chance that you’ve already had your big turkey dinner (or that you’re smelling that roasting bird right now,) and that you’ve already listed off a few things you’re thankful for. In keeping with the festive spirit, we’ve rounded up the things we’re most thankful for that have happened in the economy in the past year.
A low unemployment rate
Say what you will about Canada’s unemployment rate, it’s pretty low when you compare it with other countries. The unemployment rate is one of many factors that can make or break major financial markets such as the housing market and currently, Canada’s sits at 7.4%. Considering that Spain’s unemployment rate was 24.6% when their bubble burst; and that Ireland’s was 14.6%, we’re doing pretty well. When the U.S.’ housing market collapsed in on itself, the unemployment rate was 10%, although it’s been reduced to 7.8%. This shows that even if we do have a red-hot housing market right now, we also have the jobs and the income to support it.
New mortgage rules
Why are we thankful for the stringent new mortgage rules that went into effect on July 9th of this year? Because they brought a much-needed cooling down period to the market. Without those rules, Canadians would still be scooping up real estate far faster than they could afford to; and that eventually would have landed us in hot water. Although the rules have been hard for some to swallow, they were very much needed in our economy and they’ve returned the exact result that was intended of them.
Low interest rate
Canada has been enjoying historically low interest rates for the past two years, and there are no signs that it’s going to see any dramatic increase in the near future. This is something to be especially grateful for, because it allows those who can afford to borrow and buy real estate to do so at a relatively low cost.
We’d be remiss if we allowed the holiday to pass without telling you, our faithful readers, how thankful we are to have you! We enjoy being a part of an online community, especially one that can be so helpful and informative to consumers. We’re honoured to be one of the resources you turn to for your mortgage and financial news, and so we wanted to take this opportunity to thank you for it!