, the could find themselves with less disposable income, and potentially tied to less valuable assets if housing markets correct.Article content
The central bank added that tighter global financial conditions would put this resilience to the test, and would more clearly expose system vulnerabilities moving forward. As China pursues a COVID-zero strategy, new outbreaks of COVID-19 are another concern the central bank said it is watching.Article content
Policymakers said they are paying particular attention to the greater number of Canadian households carrying a much larger mortgage debt, noting that the number of new mortgages with a loan-to-value ratio of 75 per cent or more has risen 40 per cent in recent quarters. Canadians are taking on larger mortgages compared to their income, with the share of mortgage originations with a loan-to-income ratio above 450 per cent surpassing 25 per cent since the start of the pandemic.
Higher interest rates at the time of mortgage renewal will significantly reduce the financial flexibility of some householdsAssuming variable- and fixed-rate mortgages originating in 2020 and 2021 renew at 4.4 per cent and 4.5 per cent in 2025 and 2026, the central bank estimated that households that took out a mortgage during the pandemic could see a median 30-per-cent boost in monthly mortgage payments once they renew.
Spread love (empathy and compassion) instead of hate and discord and greed.
Build Back Better is code for the economic collapse. 🧐🧐🧐
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