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Email this10:15 am
October 29, 2017
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I think they are going to be mighty slow now.
Add in Christmas consumer debt and the uncertainty of the USMCA passing through US congress.
I'm betting January 9 is a hold.
12:43 pm
February 20, 2018
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Are you cheering for lower rates the other side does
1:30 pm
October 29, 2017
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Not cheering for lower rates at all. I just see way too many issues to expect rises.
Add in Brexit, U.S./China trade and the new CPP tax for 2019, it looks even worse.
7:33 am
February 20, 2018
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The U.S. economy added 312,000 jobs in December, smashing expectations for year-end growth
Theyll gip us in Jan but in March expectation for rate increase. The U.S. economy is hot china is a nothing burger excuse. The worse they are our competitor the better we are all we need is the U.S. Higher rates only thing thatll cool rez real estate prices still not affordable for peeps to house themselves its becoming a social crisis.
10:03 am
October 29, 2017
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The household debt still concerns me. There is a massive number of households that are $200 a month from delinquency and that was before the recent rate hikes. Debt has risen since then to 178%. It can take 2 - 5 years for the rate hikes pinch to be felt and it's only been a year and a half since the first rate hike of 5.
Don't forget the cpp increase.
Unless people get their debt reeled in, there will be huge problems, that's why I don't think rate hikes are coming, we may get two, at the most, for 2019. And I'm thinking only one rate hike, later in 2019.
9:56 pm
October 29, 2017
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October 21, 2013
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My question is, who loans out all this money that can't be afforded?
Answer: our financial institutions.
Solution: Ask your financial institution. If you're a shareholder, even better. Go to a shareholders meeting and ask these questions: Why did you do it? Do you consider it a problem? What are you gonna do about it?
I'm sure some people are overextended, but they are not doing this without enablers.
6:56 am
September 11, 2013
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I wouldn't worry about Canada's big banks, their track record and long, long history (much longer than any of us) suggests, overall, they know exactly what they're doing.
And I've never understood how housing is unaffordable but prices are high - ?! (It's so busy no-one goes there anymore!) Obviously lots of people can afford to pay or borrow a lot for housing, it's very affordable, that's why prices are high.
Funniest is the notion that if some people are overextended then it's the lender's fault, partly. If an adult signs up for money they can't repay, it's on them, no-one else. Anyway, it makes no sense to think banks are lending out money "that can't be afforded", that they don't think can be repaid - who would do that?
7:59 am
December 17, 2016
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From 2004 through to Q2 2018 - the trend looks pretty flat-line to me
Canadian Bankers Association - Credit Card Delinquency - VISA and MasterCard
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Focus: Household Borrowing in Canada
- 69 per cent of all household debt in Canada is made up of residential mortgage debt which helps increase net worth, while 18 per cent comes from lines of credit and only five per cent is credit card debt
- Canadians have significant equity in their home, averaging about 74 per cent of the home’s value
- National mortgage-in-arrears numbers remain very low, at less than a quarter of one per cent
10:25 am
October 29, 2017
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Top It Up said
From 2004 through to Q2 2018 - the trend looks pretty flat-line to meCanadian Bankers Association - Credit Card Delinquency - VISA and MasterCard
---------------------------------------
Focus: Household Borrowing in Canada
- 69 per cent of all household debt in Canada is made up of residential mortgage debt which helps increase net worth, while 18 per cent comes from lines of credit and only five per cent is credit card debt
- Canadians have significant equity in their home, averaging about 74 per cent of the home’s value
- National mortgage-in-arrears numbers remain very low, at less than a quarter of one per cent
We are only 1.5 years from the first hike, and it takes 2-5 years to reveal results from that mortgage debt that makes up 70% of all debt.
Did you know 60% of Canadians only pay the minimum on their credit cards. They may not be delinquent, but that's because credit cards don't demand higher minimum payments. Interest rate hikes don't mean much to credit card debt, because they are such a high rate in the first place.
The articles that paint a well thought out and manageable lending/borrowing situation, doesn't consider how close many people are to insolvency. Lost jobs or emergencies could easily spike bankruptcies. No way is the Banking practices picture as sound and conservative as the articles try to paint.
This article is from 2017 and debt is higher now while wages aren't keeping up
https://globalnews.ca/news/3434447/over-half-of-canadians-are-200-or-less-away-from-not-being-able-to-pay-bills/
11:24 am
December 17, 2016
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- National mortgage-in-arrears numbers remain very low, at less than a quarter of one per cent
with a statement like that, it's pretty hard to get all lathered up about an impending financial armageddon, just yet.
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