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Canada’s Rising Mortgage Rates Is Bad News For Borrowers, But Not The Economy: NBF

Canadian mortgage rates are rising and it’s squeezing the country’s highly indebted households. National Bank of Canada (NBF) warns mortgage borrowers will see more income go to debt servicing soon. However, the share of income mortgage borrowers will divert to debt servicing isn’t much at the national level. Most Canadians don’t have a mortgage, and already own their home. By itself, rising rates and household debt isn’t expected to be the trigger for a recession.  

Canadian Mortgage Borrowers To See Up To 6% More Income Lost To Rising Interest Rates

Canada’s highly indebted households are (mostly?) going to be fine, but it’ll cost them a lot more. The bank estimates those who borrowed at 4.5x gross annual income can see their payments rise between $187 and $281 per month. That would absorb between 2.6% to 6.0% of their net disposable income. Not as bad as the…

Read more at betterdwelling.com

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