New report stating that the debt load for Canadians are on the rise:

When interest rates rise, 10 per cent of Canadian households could be in financial trouble, according to a TD Economics study. 

TD chief economist Craig Alexander said household debt, which includes mortgages, has become excessive as Canadians get more accustomed to easy borrowing.

“One in 10 is a high ratio,” Alexander told CBC News. “It looks to us that Canadians’ personal finances have gotten stretched.” 

Alexander also expects those debt levels to increase more rapidly than income growth. 

The TD study said that even if the Bank of Canada’s overnight rate only rises to 3.5 per cent by 2013, family debt might still rise five per cent annually. That should be a concern, the report said, given its prediction that incomes will likely grow only by four per cent a year.

 Then after this was stated TD Bank is allowing 125% mortgages!!! Which is adding gas to the fire!!!!

TD bank is redesigning its mortgage program to make it easier for homeowners to tap into their equity and harder for them to switch to another lender when their mortgage renewal comes up. 

The main difference of the overhaul is a switch to collateral-charge mortgages, which are similar to lines of credit. The bank is encouraging employees to approve customers at 125 per cent of a home’s actual value with certain conditions, so the homeowner can easily borrow more money if the property value increases. 

Unlike traditional mortgages, collateral mortgages are difficult to transfer from one lender to another because they must be paid in full to be cancelled.


As a mortgage brokerage professionals looking out for the clients current mortgage needs and future financial situation this is scary. It is known that Canadians are increasing the debt load and TD Bank has stated that it is offering a collateral mortgage which will give borrowers access to 125% of the homes value. This just adds gas to the fire by giving the opportunity to give Canadians more debt. This also will make it harder to leave the bank for other lending institutions offering better mortgage packages and rates. As a mortgage professional it is quite scary what TD is doing to its borrowers.

At Networth Mortgage Centre we will get you the best mortgage package and rate deal for your needs and still show you how to be ahead.

Our current rates are as follows:

1 year fixed 2.44%….2 year fixed 3.09%…3 year fixed 2.79%…4 year fixed 3.49%….5 year fixed 3.29%….Variable Prime – .90 = 2.10%.

Please visit my website at for more information or feel free to contact me any time.

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