Households struggle as lenders hike rates

  1/15/2018 |   SHARE
Posted in Mortgage Interest Rates by Forest Hill Real Estate CENTRAL| Back to Main Blog Page

Debt Stress Frustration

If the Bank of Canada decides to increase interest rates this week it will pile further pressure on millions of already-struggling households, while some lenders are already making changes to rates.

A survey from insolvency firm MNP reveals that almost half of respondents are within $200 of being unable to meet their monthly financial obligations.

The report shows that a third of households are already unable to meet their monthly costs with a similar share concerned about their levels of debt, 38% regretting taking on so much debt, and 55% not expecting to have a debt-free retirement.
Four in ten Canadians are concerned that they would be in financial trouble if interest rates rise much more; a third could be facing insolvency.

The Financial Post reports that RBC, TD and CIBC have all increased mortgage rates with 5-year fixed rate loans now above 5%.

Many economists are expecting BoC Governor Stephen Poloz to announce the first interest rate rise of 2018 on Wednesday. 

Bank of Canada Benchmark Rate, Household Debt, Mortgage Consumers, Mortgage Rates Canada, Personal Finance, Variable Rate Mortgages