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Household debt in Canada is high... may cause the BOC headaches.

Friday, December 29, 2023   /   by Rob Mills

Household debt in Canada is high... may cause the BOC headaches.

Debt Service Ratios.png
Taking a look at debt levels in Canada right now
doesn't make nice reading, and it could put the The Bank of Canada in a sticky situation as they can’t get too far ahead of the US Federal
Reserve in terms of rate cuts without hammering the loonie and causing another bout of inflation via more expensive imports.

Our biggest problem is that the US consumer is showing no signs of slowing down.

And why would they?  They’ve all
locked in low rates for 30 YEARS (something Canadian home owners aren't allowed to do) and their debt burdens overall are much lower than in Canada.

The Fed can’t cut rates until US households cave, and this could mean US consumers hold the future of Canadian interest rtes in their hands, even though our economy may demand it.  Not comforting


  real estate, advice, buyer, seller, market conditions

Your GTA Properties
Michael Bertolli And Rob Mills
101 Brock Street S. 3rd Floor
Whitby, ON L1N 3J9
416-319-4299

Information is provided exclusively for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS®. Copyright 2024 Last Updated April 18, 2024
Information is provided exclusively for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS®. Copyright 2024 Last Updated April 18, 2024
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