Guess who’s the least prepared for a jump in interest rates.
Canadians Spend 65% More Income Servicing Debt Than Americans, Highest In G7
Canada’s household debt service ratio (DSR) is manageable, but far from normal. An addiction to cheap credit and expensive housing has led to an epic borrowing spree. Households in the country now devote more of their income to paying off debt than any other country in the G7. Not by a little either — over 50% higher than any of its advanced economy peers.
I wonder where we might have gotten this idea from. (scroll down to “not inklessPW”)
Mention this to any Liberal and uncomprehending look you get back is like staring into the eye of a chicken.
Christia’s comments are not surprising from someone who had their relatives sign for their mortgage for a million + dollar house in downtown Toronto and who drives a European SUV. Has no idea of the effects of the Lieberal government’s policies on normal Canadians ie outside of Toronto, Ottawa or Montreal
Guess who’s NOT “leveraged” to the hilt? Yep. The RED Chinese. They can even afford pricey Vancouver high rise housing units … and leave them vacant.
I’m sure that’s nothing.
Good post, and a large part number of business writers are talking about an upcoming housing bubble, given skyrocketing housing prices with the low mortgage rates. During the past several weeks long-end interest rates have been going up, signaling future increases in mortgage rates. This could result in an explosion in mortgage defaults. If the BoC were to artificially keep longer-end rates low, this could fuel inflation even more (Canada is seen as potentially having worse inflation than other G7 nations).
The latest BoC statements suggest that the BoC will let higher-end interest rates, including mortgage rates, increase further. So to reduce the housing bubble, and to fight the deficit, big government types advocate taxing home owners. The Globe and Mail, well-known as a mouthpiece for the federal Liberal party, advocates a capital gains tax on homeowner principal residences (without mentioning a corresponding wrire-off of cost of home upkeep, a normal tax practice). So watch for this in the upcoming budget.
Yup. Heard Ian Lee on the radio. He said he was going to write a counter op-ed to the BS of capital gains on homes.
Liberal Bastards Mouthpiece Turds will make it seem like a tax on a 500,000 dollar home is a tax on the rich but WTF the average home in Ottawa is something stupid like 700,000.
But they’re really taxing people’s kids who are going to inherit the money from their parents.
Are people supposed to not buy homes when interest rates are almost zero?
Meanwhile municipalities aren’t encouraging developers.
Meanwhile the Feds want to bring in 500,000 thousand + every year.
Where the BLANK are these people going to live?
Just an observation: how the hell are we still in the g7? Our economy is not one of the seven largest. Our military is a joke so we can’t contribute anything there. Our buffoon of a PM was left out of any serious conversations. (With good reason) Maybe the UK and US keep us around because of WW2.
It would make far more sense to have Australia in there. India, Brazil, Spain…all make more sense
Chris, you do make a most sensible point….therefore the “sensible” part should answer your question. Your welcome.
5 bucks for 5 pounds of potatoes is called fucking inflation.
8 bucks for a fucking 2 x 4 is inflation.
The price of Everything is rising like a mushroom overnight.
The carbon tax has a part to play and with it going up up up WTF is to be expected?
The worst government in the history of the country is empowered to destroy the country outside of K-bec.
When SHTF I hope Liberals are made to eat it.
Hey Buddy, you notice too eh!
Canadians want it this way.
In a normal country, people would rebel.
As stated in the comments of the article, the debt percentage makes no sense.
Very poorly explained or detailed. 12.6% of income, even after tax, doesn’t seem a crisis, something is wrong with the math from the author. Math is Hard.
On the other hand, credit is so easy to obtain in Canada, it is ridiculous how easy it is, the banks make it very easy.
Taxes are simply too high and need to be reduced,
across all levels of government.