Batten down the hatches

We’re not even seeing much of an uptick in foreclosures at this point, but the fact that the mainstream media is picking up on the need for shoring up loan-loss provisions shows that someone, somewhere, is a little worried about the state of the housing market.

On top of burgeoning household debt and international exposure, another issue that could force the banks to build up these provisions is that the same supports that kept Canadians paying their loans at the height of the pandemic are no longer in play.

“The train has left the station, but it’s not off the rails yet,” Hoyes said. “People are depleting the rest of their savings, they’re using whatever deferrals they can get… But with each passing month, as interest rates go higher, as more mortgages roll over, car loans roll over, everything else rolls over, then the pressure builds and builds and builds.

10 Replies to “Batten down the hatches”

  1. I know you are being squeezer in Canada But,
    So happy when I burned my 50,000 dollar EUQITIEZED loan. Paid it for 5 years, They switched companies 3 times and I believe they shite me on the payments. One of the companies now has a Class action lawsuit. I calculated the payout and each defendant gets about 250 dollars. WOW.
    Now the rates are going from 2.7 percent to at least 5.
    Our treasure secretary needs to be in a nursing home and Biden needs to be elsewhere.

      1. I thought that Greenspan was a twit when he ran the Fed, but Yellen, while she had that job, made him look like a genius.

  2. CanuckJack
    Car loans roll over? How long are you people taking to pay for a car?

    Some poor suckers get annual rolled,
    2 year rolled then when they cant pay, the car gets rolled to some other unsuspecting low/no credit.
    The crooks will get rolled soon and I’m looking forward to it.

  3. I took a short term mortgage renewal in 1980, it got me over the 1981 hump and I then did a longer term renewal when things came off peak. I still wonder how todays “buy on low rates” kids are going to handle the inevitable rise.
    “It’s the lure of easy money, it’s got a very strong appeal…”

  4. Whatever.

    Canadians not only voted for this but will labour under it as the new normal, even as they are walking from houses and cars they cannot afford and feeding their children junk food in crummy motels.

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