Dec 11, 2012
By Michael Kramer
The head of the Bank of Canada says his warnings about coming interest rate hikes may be resulting in lower household debt.
Bank Governor Mark Carney says the advantages of signalling future intentions about interest rate hikes may be influencing the types of mortgages homebuyers are acquiring.
He points out the share of fixed-rate mortgages has almost doubled to 90 per cent this year, with a corresponding decline in variable-rate mortgages.