“Household debt is extremely high” in Canada according to Simon Brière, RJ O’Brien’s market strategist in an interview with the À vos affaires program.
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After 6 increases in interest rates, the mortgage payments are much higher.
They could go as high as $ 500 a month between last year and today on a $ 300,000 loan over 25 years.
With a payment of $ 2,500 per month, the loan amount granted dropped from $ 612,000 to $ 406,000, which represents a decrease of approximately 30%.
Canadian household debt is only growing and currently far exceeds that of households in the United States.
“The manager? Is it real estate,” according to Mr. Brière.
The strategist says the rate hike is not over, however, it should be lower than recently seen.
