Canadian millennials, especially homeowners, are expected to face significant economic damage and high interest costs in the coming months due to rising interest rates, according to a report by RBC, leaving them vulnerable to job losses and straining their high levels of debt.
Canadian mortgage borrowers are increasingly opting for fixed interest terms, with a record 95% of mortgage originations in June being fixed rate, reflecting a desire to avoid short-term interest rate hikes while not missing out on potential rate cuts in the future.
A majority of Canadians believe that companies are using inflation as an excuse to overcharge them, with this view consistent across all income groups, according to a survey by Modus Research. The public's perception is influenced by reports of record profits for major corporations, causing growing economic anxiety among Canadians.
Canadian real estate and the economy are facing challenges, with slowing growth, high debt for millennials, increased fixed-rate mortgages, rising housing prices as an inflation risk, and low mortgage growth prompting concerns.
The second quarter of 2023 saw a consistent rise in borrowing among Canadians, with subprime borrowers experiencing the highest increase in credit balances due to higher spending habits and elevated interest rates on variable-rate loans. Demand for new credit also grew significantly, leading to a total Canadian household debt of $2.3 trillion.
Canada is facing a deep crisis due to a housing crisis, rising consumer debt, and high interest rates, which are causing unaffordability and financial vulnerability for working people, while the government's plan to address these challenges remains unclear.
Canada's economy unexpectedly contracted in the second quarter, raising concerns of a possible recession, as declines in housing investment and slower exports and household spending impacted growth. This is likely to lead the central bank to hold interest rates steady.
The Canadian government is facing higher debt servicing costs as interest rates rise, resulting in billions of additional dollars spent on interest payments and less money available for other government priorities, potentially leading to difficult decisions about cutting spending or increasing taxes.
Inflation has led to difficult financial conditions for Europeans, with one in four experiencing a "precarious" situation and resorting to skipping meals and making complicated financial choices, according to a new survey.
Financial uncertainty has become the new normal for many Canadians as inflation erodes savings, according to a survey by RBC, while the US Federal Reserve maintains interest rates but projects a further rate increase by the end of the year and a tighter monetary policy through 2024, and the family of a North Carolina man sues Google for negligence after he drove off a collapsed bridge while following Google Maps directions.
