HomeMortgageHow are Canadians' savings benefiting from the current environment?

How are Canadians’ savings benefiting from the current environment?

“The belief that rates will not go higher, or the lack of clarity, is reflected in the inverted yield curve,” Jackson said. “That means yields on longer-term Government of Canada bonds are lower than shorter maturities. At last check, one-year to three-year maturities are yielding 4.63%, five-year to 10-year maturities are yielding 3.74%, and yields on over-ten-year maturities are 3.56%.” 

Household debt at a record high

Latest data from TransUnion showed that Canadian household debt has reached its peak so far during the second quarter, touching a record high of $2.34 trillion.

Of this, mortgage debt accounted for $1.73 trillion while non-mortgage debt totalled $604 billion.

“While some financial pressure has been offset through continued savings growth and strong employment, many Canadian consumers have accessed credit as a means to short-term liquidity,” said Matthew Fabian, director of financial services research and consulting at TransUnion Canada.

“The combined pressure of a high cost of living and elevated interest rates has created a payment shock, as the cost of debt has grown even heavier for some Canadian households.”

Read more at www.mpamag.com

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