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The May 23 report said concerns about fallout from high household debt, around three-quarters of which comes from, are most pressing for those with lower incomes because they also tend to be more highly indebted. So not only do they rely more on having jobs to service the debt, but they are now “facing real pressure” from higher housing costs.Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.
“Household debt in Canada has been rising inexorably…. Unfortunately, makes the economy vulnerable to any global economic crisis.” The housing authority said there are concerns Canadians’ high debt levels could be exacerbated over the longer term, depending on the trajectory of interest rates.Article content
“Although the last decade was characterized by historically low interest rates … there is no guarantee that we will return to such a pattern after currently high inflation is addressed and interest rates start to decline,” the report said.