Many Canadians 'uncomfortably close to broke': MNP - BNN Bloomberg
www.bnnbloomberg.ca
A new report from insolvency firm MNP LTD. says more Canadians are facing a deteriorating debt situation, as high costs and elevated interest rates make it harder to pay the bills.
  • Showroom7561@lemmy.ca
    0·
    11 months ago

    First it was an entire paycheck away, and now $200… next level is pretty much only able to survive because their credit card still has room on it.

    Pretty grim.

        • ☆ Yσɠƚԋσʂ ☆@lemmy.mlOP
          11·
          11 months ago

          Having signed up for 6.1%, you’ve presumably budgeted so that you can actually pay it going forward at that rate. The problem for people who signed up at around 2% is that they budgeted to pay at that rate. And since a lot of people have no savings, they can’t afford a large rate increase now. So, when mortgage renewals start coming up, a lot of people are gonna end up being insolvent.

          • Funderpants @lemmy.ca
            0·
            11 months ago

            You are screwed for sure if you shopped at the top of your approval range in one of the hotter high value markets or immediately ate up the rest of your GDS/TDS with truck/SUV loans, renovations or other expenses. However, There will be Canadians who are in a position to handle a rate increase from 2.3% to 6% or so, when their renewals come up.

            • ☆ Yσɠƚԋσʂ ☆@lemmy.mlOP
              11·
              11 months ago

              The context here is that over half the population is 200 bucks away from not being able to make ends meet. So, clearly lots of people will not be able to handle large increases in mortgage payments. Meanwhile, those who do will be pushed further to the margins.

          • SokathHisEyesOpen@lemmy.mlEnglish
            0·
            11 months ago

            We don’t have to renew in the USA. Someone else explained the way they work in Canada and yeesh! That’s hella lame.

            • ☆ Yσɠƚԋσʂ ☆@lemmy.mlOP
              11·
              11 months ago

              Yeah, I was talking with a friend in US about this and he was absolutely shocked that you have to renew the mortgage every 3 years of so in Canada.