The Bank of Canada kickstarted the year with an eighth consecutive interest rate hike, and the effects were plain in the mortgage space. realestate realestatenews mortgages Canada
, mortgage borrowing grew at the slowest pace since 2003 in the first quarter of this year. That drop off in borrowing put growth in mortgage loans at a 20-year low.
The report, authored by BMO Economist Shelly Kaushik, discusses how elevated interest rates are impacting Canadian households, pointing to Canada’s household debt-to-income ratio, which edged up to 184.5% in Q1 from 181.7% the quarter prior, on a seasonally-adjusted basis. Also on an adjusted basis, “disposable incomes fell as government transfers receded and interest costs rose, with both factors more than offsetting the gain in compensation,” writes Kaushik.The report also draws attention to Canada’s household debt service ratio which increased from 14.4% to 14.9% in Q1. With that rise, the ratio now sits at its highest level since 2019 and is “just a tick” below the all-time high recorded in 2007.
“The increase was driven by rising debt payments, which are expected to climb further in the coming quarters,” explains Kaushik Household net worth jumped to 1001.6% in the quarter following three straight quarters of decline. This is attributed to rising equities and housing market recovery. On par with the housing market upturn, equity in real estate rose from 73.5% to 74.3%. Amid rising home prices, that figure is poised to grow further in the second quarter.Zakiya is a staff writer with STOREYS.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Mortgage MinuteFrank Napolitano from Mortgage Brokers Ottawa answers some frequently asked mortgage questions.
Read more »
Mortgage Q+A: What the Bank of Canada interest rate hike means for borrowersMortgage expert Leah Zlatkin answers your questions about what the Bank of Canada rate hike means for homeowners and buyers. Find out more
Read more »
Canadian golfer flattened by security while spraying champagne in RBC Canadian Open celebration | CBC SportsNick Taylor's victory on Sunday marked the first time a Canadian golfer won the Canadian Open title since 1954. That wasn't lost on fellow Canuck Adam Hadwin, who was one of the the first to rush the green in celebration, spraying champagne at Taylor and his caddie.
Read more »
Western Canada: Alberta only province to not share FOI data, according to Secret Canada projectUnlike every other jurisdiction in Canada, all 22 ministries in Alberta denied The Globe’s FOI requests, claiming “no records” existed – even though the province has a tracking system
Read more »
10 mortgage finance company valuations in a slowing housing marketWe are looking for firms that finance mortgages that could be investment opportunities
Read more »
TERRAZZANO: Higher interest rates the price of government inflationThe Trudeau government deserves a big chunk of the blame for rising mortgage payments.
Read more »