Governor Tiff Macklem is counting on a 425-basis-point jolt to interest rates, delivered in less than a year, to slow consumption and rein in soaring inflation. But differences in the impact of the hikes between the two camps are creating uncertainty around how and when the economy will cool.
They moved to Canada’s financial capital from Mumbai in September 2020, when house prices started rising rapidly as emergency low interest rates spurred demand amid limited supply. Fearing missing out after after seeing their immigrant friends getting into the housing market during that run-up, they bought their first home in February 2022, spending nearly $1 million on a place an hour away from downtown.
“I definitely regret the decision. There’s really nothing we can do. We’re just waiting for the rates to drop.” “We feel sorry for people who just entered the housing market, especially in Vancouver and Toronto. How dreadful and dramatic it can be if you have to pay significantly more and it’s really out of your control,” Limawan said.
Next you'll come out with something as brilliant as interest charges on credit cards hit people that carry a balance more than those that pay in full
Baby Boomers served our sentence under this PM’s father. Same policies, same effects.
Stating the obvious np
Lower rates: the Boomers' house values go up 500%. Raise rates: guys, guys, you don't want to do this, it hurts you but it hurts us not so much.
Aren't these the people that voted for Trudeau joke is on them haha
Boomers and Gen X are getting hit too, just not as bad... maybe.... keep in mind those generations have been absolutely murdered by rate hikes that put these ones to shame long before millennials were born, so we've all been there, done that.
This has never changed over past generations.
Borrow borrow interest rates will stay low for a long time she said.
Not true. Crushing those that are retired.
I guess Im outside the 'not so much'. My wife and I are just getting by. Who knows what we will do when our mortgage renews.
Hmmmm Once again GenX is ignored … I guess we don’t matter
Immigrants are welcome and encouraged to leave. Millennials need to grow the hell up and realize that their progressive politics are responsible for their predicament.
They’re not that worried about the boomers, they’ll be rid of them soon enough, it’s their projected voter base that they’re targeting to enslave.
HappyCanadian55 Of course it is. 👇🏾👇🏾👇🏾
Immigrants and millennials better hope they never see the interest rates that boomers had to endure in the 80’s. I paid 19.5% on my first mortgage and 23% on my car loan. I was making about $6 an hour, which would be about $20/hour today. Spend within your means.
Really...last I checked young people and immigrants all have the latest cell phones, etc
You guys always leave out Gen X and well, whatever, nevermind.
Good. Typical leftist voter base got what they voted for.
Us boomers got hit under Trudeau Snr, not so much now because we have all through our working years to pay off his debt. Thought my future grandkids might have it better but not with this liberal farce in power.
Awwww .... my first mortgage was 13.75% ...
Wealthy people always do well under liberals. This group doesn’t hold cash. They have real estate, gold, stocks and other real property that goes up in value with inflation.
How about them Gen X'ers?
Fan f king tastic. TF did they think would happen. Clowns.
Poor planning
The average Canadian wage in 2023 is 2.17 times higher than it was in 1991. Well outpaced by housing. Ahh to think birthright is a skill
The rate is the same for everyone. Boomers have already paid their mortgage, that's all.
Inflation is hitting retirees on fixed incomes harder. Newcomers who live on welfare and professional students? Not so much.
Which generation knew the value of a dollar and living within their means?
Middle class gets shit on again and again and again... Is JustinTrudeau finally go. A wake up and help Canadians
YUP & I am enjoying every minute of it & hope it goes way beyond repair so Canada can join ranks of the 3rd world countries & cannot recover if they tried for 1/2 a century
Banks hike rates for immigrants and millennials. We should deregulate banking in Canada.
I guess Gen-X doesn't matter... That's okay, they're used to that.
You get what you vote for.
Wow. No mention of how 'boomers' had to deal with 20% interest rates in the early 80s. 'Generational wealth gap at root of contrasting experiences' ? You mean boomers have worked decades more so have more money? When I was in debt interest was high, as a saver interest was low.
Phew! I'm none of those... guess it's not affecting at all... 🙄
In other news: borrowers get hit hardest by rising rates
Boomers are scum
Boomers shouldn’t have much debt that would be affected by this. Although it does impact everything. Thank the liberals.
Ya, boomers worked their butts off , raised families and retired. No thanks to government handouts.
we already went through it with Pierre Trudeau!
Everyone is affected. This is a manufactured crisis resulting from decades of artificially low interest rates where boomers suffered from stunted investment growth. Millennials have been overspending for years to keep up with the Jones’s.
Then lower rates again, it’s simple
Another divisive article about rate increases. After decades of extremely LOW interest rates, the boomers were hit hard. Their pension savings is worth less than half of the promise they were given. No story on that. And honestly, until borrowing rates exceed 15%, who cares?
Well yeah. They own their houses lol. Water is wet.
Story of millennials lives, isn't it? As for immigrants, postmedia should give up any pretense of caring. They know immigrants don't vote Alberta oil - I mean... conservative.
Really, I think not..
This is complete nonsense! First of all, anyone having already paid off their mortgages are on fixed incomes and are suffering from horrendous fiscal policies. Maybe suffering worse than other demographics because their costs are skyrocketing but their net incomes are declining.
Boomers survived Trudeau senior. Millennials get Trudeau junior
The country is going to collapse.
We save money, we worked, we didn't expect that everyone would be a winner, we were for the most part intelligent and educated at a higher standard than the dumbed down system of today, we didn't ever expect anyone to give us anything we didn't earn, ever.
Trudeau loves f🍁cking over Millennials
Sure, boomers paid off their $20K home at 18% interest over a decade ago and most of them are retired. Not much requirement for a mortgage at that point in life. You’re going to have to slip your generational bias down to Gen-X for better comparison
Soooo we should give immigrants and millennials a break? Funny, I don’t remember getting a break in the early 80’s when The Dauphin Sr. was in charge and 18% interests rates! 🤔 I just remember living within my means and praying daily for that f$& to be voted out…
Inflation is hitting EVERYONE. This is the result of supporting corrupt politicians. Especially ones who think the budget balances itself
This is exactly how it should be. Boomers are not on the hook for this one. Those that are not willing to work or have collected big amounts from programs like CERB must now pay another way. Immigrants must learn there are no “free lunches” in Canada. cdnpolitics
That’s the goal, keep young and new Canadians dependant on the government. Then go into debt to keep them just above water, trick them into thinking they are helping them hands securing their votes
Of course not. Boomers are the luckiest and most entitled generation in history. I could not care less what they think, and honestly, the faster they die off en masse, the better it will be for everyone else
We have no way out without growing our economy and we cannot grow our economy by cutting off from the world economic engine, China. To fall with the US? or to grow with China? That's the question for our economy.
Good! They voted for Liberals. Now let them suffer.
B.S.
All are affected....
Billions to prop up an openly Nazi. Wack jobs.
The last of the boomer generation is set to retire THIS year….so sure, they might own their homes but now they’re on a fixed income and thus your article is BS!
You get what you voted for.
Well duh, most boomers don't have a mortgage and high debt.
Welcome to poverty. The Government blew 600 Billion. Now you'll be poor forever. Crime through the roof. Great talkers in the Govt tho.
Rubbish. The hikes are making things very challenging for many people in the “boomer” demographic.