We are hoping to move and have our house for sale.If we sell our house, our mortgage may increase by aprox 30,000 at most.This is still affordable to us as we do not have a large mortgage.Everyone is warning us that with the economy it is not smart to take on anymore debt.Can someone explain why it makes such a difference if Canadian banks are said to be in a stronger position?

Thanks
l am living in Canada, how much will this affect our mortgages?

Maybe today.....but banks around the world are panickin, because the snowball is gaining speed an size, as it heads down the hill..check around and see if people are getting new car loans, this may be a good indicator, for your region......

There is a surplus of houses on the market right now & more being added to the supply daily as loans made to unqualified buyers come due, or the interest rate increases above what they can afford to pay.

The US has only two industries left to fuel the economy. They r home building & providing medical services. All other wholesale / retail sales & manufacturing depend on the money created by these two industries. All other industries that fueled the economy have left for cheap labor countries.

Home building has come to a Virtual stop because of the housing surplus & lack of people earning enough to purchase the surplus houses.

Everyone in the home construction, furnishing, carpets, drapes, appliances, fixtures, etc. r now unemployed, living off of their savings.

Banks depend on those savings accounts to have money to loan. They r failing.

So the bottom line is u may loose ur source of income, even if u think it is secure retirement account. If the retirement company goes broke, u loose ur money.

The cure is to create jobs with wages high enough to purchase the surplus homes.