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Liberal deficit spending could impact your mortgage

STOCK PHOTO/FREEIMAGES.COM

What does a Liberal majority and the promise of deficit spending by the Trudeau government mean for the average homeowner?

According to Sherry Cooper, the chief economist at Dominion Lending Centres, you might want to re-assess your mortgage.

“Particularly so because running deficits means issuing more debt and increasing the supply of government bonds means interest rates are likely to edge upward. Not rapidly, and not by a large amount,” Cooper told 660 NEWS.

As for interest rates she doesn’t expect the Bank of Canada to increase rates for another year.

“I’m not concerned about Canada’s ability to finance these deficits and especially given that the deficits are slated to be temporary. We are a AAA country, we have very low debt to GDP ratio.”

Overall, Cooper believes the Liberal majority is good for the country because it gives Trudeau a strong mandate and eliminates a lot of uncertainty.