{"id":34028,"date":"2018-05-07T07:26:54","date_gmt":"2018-05-07T12:26:54","guid":{"rendered":"http:\/\/olduvai.ca\/?p=34028"},"modified":"2018-05-07T07:26:54","modified_gmt":"2018-05-07T12:26:54","slug":"boc-8-of-canadian-households-owe-more-than-20-of-the-2-1-trillion-in-debt","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=34028","title":{"rendered":"BoC: 8% Of Canadian Households Owe More Than 20% Of The $2.1 Trillion In Debt"},"content":{"rendered":"
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BoC: 8% Of Canadian Households Owe More Than 20% Of The $2.1 Trillion In Debt<\/a><\/h3>\n<\/header>\n
\"BoC<\/div>\n
Canadian real estate debt hit a new high, and the news gets worse as they explain it further. The Bank of Canada<\/a> (BoC) updated household debt numbers for March. In a speech this week, BoC\u2019s Governor Stephen Poloz also gave further insights on the numbers. The record debt levels are concentrated in a smaller segment of Canadians. These Canadians are now in a \u201chighly vulnerable\u201d position, and they\u2019re f**ked if they don\u2019t start preparing for higher rates now.<\/div>\n
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8% Of Canadians Have Mortgage Debt Over 3.5x What They Make<\/strong><\/p>\n

In a speech this week, the BoC gave us further insights on the Canadian debt problem, and it\u2019s worse than we thought. It turns out 8% of households have mortgage debt that\u2019s more than 350% of their gross income. This segment of borrower represents \u201ca bit more than 20 percent of total household debt.\u201d BoC Governor Poloz stressed that these households need to understand how \u201cpersonally vulnerable\u201d they are, as rates rise.<\/p>\n

Rising rates are already putting the pinch on households, and it should get worse. The BoC reiterated the \u201cneutral rate,\u201d which is the rate where policy is no longer expansionary, is between 2.5% and 3.5%. Assuming no \u201cshock\u201d to the economy, rates will get there. Currently we\u2019re at 1.25%, so that would mean rates will double over the next few years. You know, if we don\u2019t face a major recession. Then you\u2019re in the clear on rates, but a whole other bag of issues will crop up. On that note, onto those climbing debt numbers.<\/p>\n

Canadian Households Owe More Than $2.1 Trillion Dollars<\/strong><\/p>\n

Total household debt hit a new record, but the annual pace of growth continued to decline. The total balance at the end of March stood at a whopping $2.129 trillion, up $3.4 billion from the month before. The annual rate of growth is now 5.25%.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

BoC: 8% Of Canadian Households Owe More Than 20% Of The $2.1 Trillion In Debt Canadian real estate debt hit a new high, and the news gets worse as they explain it further. The Bank of Canada (BoC) updated household debt numbers for March. In a speech this week, BoC\u2019s Governor Stephen Poloz also gave […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[942,15863,103,195,1935,2340,5058,943],"class_list":["post-34028","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-canada","tag-better-dwelling","tag-canada","tag-debt","tag-household-debt","tag-housing-market","tag-mortgage-debt","tag-stephen-poloz"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34028","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34028"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34028\/revisions"}],"predecessor-version":[{"id":34029,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34028\/revisions\/34029"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}