AGENT LICENSE ID
109754 MSB
BROKERAGE LICENSE ID
X028992 MMB
![Susan Zanders Senior Mortgage Broker - Broker Owner, Mortgage Broker Maple Ridge, BC to Whitehorse, Yukon](https://agentphotos.mortgageweb.ca/87_profile.png)
Susan Zanders
Senior Mortgage Broker - Broker Owner, Mortgage Broker Maple Ridge, BC to Whitehorse, Yukon
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Email:
Address:
13533 Nelson Peak Drive, Maple Ridge, British Columbia
Higher interest rates and household debt: Cause for recession?
8/10/2022
From National Bank of Canada
- There is a great deal of concern regarding the vulnerability of Canadian households not only to inflation shock but also to sharp interest rate hikes.
- For heavily indebted households, the bill could prove hefty. Those that contracted mortgages 4.Sx their gross income could see their monthly payments increase by $187 to $281 from 2022 to 2024 and absorb as much as 2.6% to 4.0% of their net income.
- At the macroeconomic level, however, the story is far different given the high proportion of properties without mortgages. By our calculations, the payment shock related to servicing the accumulated debt will represent 0.65% of disposable income over the next three years. The amount is significant but manageable in that it alone will not suffice to pull the economy into a recession.
https://www.nbc.ca/content/dam/bnc/en/rates-and-analysis/economic-analysis/special-report_220728.pdf