Comments on: Canada’s Highly Indebted Households Are About To Feel The Pinch From Rising Rates

By: John

John — Sun, 12 Dec 2021 11:24:16 +0000

In reply to Kris. What age groups are holding this Mortgage debt and what age group are holding the assets.

By: D

Thu, 09 Dec 2021 18:08:34 +0000

In reply to VNM. Tallest residential condo unit in Canada and Toronto is a luxury condo where less than 20% of units are occupied.

By: Sam

Sam — Thu, 09 Dec 2021 15:00:06 +0000

In reply to Kris. Crypto, and stay in your apartment.

By: Mark Bayly

Mark Bayly — Thu, 09 Dec 2021 09:51:55 +0000

Incomes are going nowhere so can’t see how house prices can keep going up unless the government moves to negative interest rates. Must be many stressed out people paying for mortgages. Canada is not an easy place to make money. Lots of taxes inflation and competition. And lots of land to build more houses Trudeau is bringing in a million immigrants a year which might help housing but of course will destroy the environment

By: DasHip

DasHip — Thu, 09 Dec 2021 07:04:10 +0000

In reply to VNM. .. Vancouver's been like this for years, man.. Glad your starting to feel it over there in ON too. Maybe eventually y'all will do what should have been done years ago -- walk over to Ottawa with pitchforks already.

By: Diane

Diane — Thu, 09 Dec 2021 02:50:50 +0000

In reply to Kris. Rent where you live and buy where you rent. Or buy a cheaper place in a rural area as your second home. We have to get creative.

By: Flipg

Flipg — Thu, 09 Dec 2021 02:14:28 +0000

Savers, workers, renters, small business owners, new immigrants, anyone foolish enough to participate in the once productive economy of Canada, anyone on a fixed pension… all will be sacrificed to Moloch: the God of Debt.

The Fed will play the tune and we will dance to it.

By: D

Thu, 09 Dec 2021 02:02:23 +0000

Acccording to statscan, 30% of households have a paid off home(s), 36% have mortgage, and 34% rent. Numbers might be different but seeing how there’s 16 million households, $2.5 trillion / 5.76 trillion households = $435,000 mortgage debt for households with a mortgage. That seems like a lot but the average home in Toronto is valued at $1.1 million and a lot of homes are going for $600-900k.

By: Derek

Derek — Wed, 08 Dec 2021 23:45:02 +0000

In reply to Kris. I agree but you could invest your money in ETFs low cost dividend paying ETFs and receive a dividend with the money you’ve saved. I do agree though that the government has totally screwed over prudent people over ones who don’t have a problem over leveraging their lives. Total disgrace. Not to mention not free market at all.

By: RainCityRyan

RainCityRyan — Wed, 08 Dec 2021 19:02:09 +0000

Doesn’t really matter what the BoC try, it’ll all come down to the Fed.
If the Fed raises the BoC will have to follow to defend the Loonie. It might not be one for one (though I think the BoC will try to get out in front of the Fed), but it’ll be the same direction and magnitude.
Otherwise we have a currency depreciating on top of inflation, which is especially bad since the Canadian economy is disproportionately based on international trade.

And remember determining rate hikes are the same rules as a road trip. It’s the largest bladder that determines the rest stops … not the smallest.