Higher interest rates are changing the way Canadians manage their long-term finances.
A new report from StatsCan shows the growth in mortgage-related debt in this country is still growing but at less than half the pace of expansion we were seeing even just a year ago.
There are worries in this country about the impact rapidly rising interest rates will have on the residential market in coming months. For those seeking a mortgage for the first time, rising interest rates are simply a higher bar to get over. But for those who secured mortgages back when rates were low and are now up for renewal, this could be challenging.
The latest inflation figures, for example, noted mortgage costs have risen by 30 per cent. That’s a big increase and a hurdle that will no doubt cause significant pressure for those who were already close to the line between revenue and expenses.
And the new numbers suggest homeowners are borrowing less. In the year that ended in May, the growth in mortgage debt rose four per cent A year earlier that figure was more than 10 per cent.
