“We know higher interest rates are difficult for many Canadians — particularly young Canadians — many of whom are recent homebuyers and are therefore carrying higher debt loads,” Rogers said in aRogers pointed to inflation, volatility in commodity and financial markets as well as increased debt levels as risks to financial stability.
“We estimate that just about all variable-rate mortgages taken about between May 2020 and July 2022 are now in this position [trigger rate]” Mendes wrote. “The more that monetary policymakers raise rates, the more interest these borrowers will owe. However, as the Bank of Canada’s research suggests, that doesn’t necessarily mean all of those homeowners will need to top up payments. Some lenders will allow for negative amortization.
“Here at home, these measures also included a borrower-level mortgage stress test to ensure Canadians could continue to afford their homes when interest rates rose,” Rogers said. “And, importantly, we are not expecting a severe economic downturn with the kind of large job losses typical of past recessions.”on labour markets, Bank of Canada governor Tiff Macklem made the case that the high level of job vacancies in Canada could provide a buffer to limit layoffs in the next downturn.
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Bank of Canada’s Carolyn Rogers flags first-time homebuyers facing 'trigger rates' as riskAbout half of variable\u002Drate, fixed payment mortgages have hit their trigger rates, Bank of Canada estimates. Read more 😂 ain’t no new buyers unless generational wealth Well if interest rates stayed low more people could afford homes. That's a real shame. Guess they shouldn't have cheered on mandates so feverishly.
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Bank of Canada’s Carolyn Rogers flags first-time homebuyers facing 'trigger rates' as riskAbout half of variable\u002Drate, fixed payment mortgages have hit their trigger rates, Bank of Canada estimates. Read more She works at BOC and just suddenly realized this. I’m thinking I should apply for a job there. I could have told people this a year ago TSX needs to delist Russian mining companies like Silver Bear Resources. Not ethically correct when Ukrainian children are getting bombed by Russia. Do the right thing.
Source: fpinvesting - 🏆 43. / 63 Read more »
Bank of Canada’s Carolyn Rogers flags first-time homebuyers facing 'trigger rates' as riskAbout half of variable\u002Drate, fixed payment mortgages have hit their trigger rates, Bank of Canada estimates. Read more
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Bank of Canada’s Carolyn Rogers flags first-time homebuyers facing 'trigger rates' as riskAbout half of variable\u002Drate, fixed payment mortgages have hit their trigger rates, Bank of Canada estimates. Read more
Source: OttawaCitizen - 🏆 21. / 68 Read more »
Bank of Canada’s Carolyn Rogers flags first-time homebuyers facing 'trigger rates' as riskAbout half of variable\u002Drate, fixed payment mortgages have hit their trigger rates, Bank of Canada estimates. Read more
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Some recent homebuyers will find rate hikes painful as mortgages go up, BoC’s Carolyn Rogers saysNew research from the Bank of Canada finds variable-rate mortgages now account for about one-third of total outstanding mortgage debt, up from about one-fifth at the end of 2019 Judges, lawyers and cops are proof that there is no rule of law in Canada. They do things that would put normal people in jail or have consequences. Local media has ignored this problem ruthlessly and helped these bad actors stay hidden. For example: A quote from Trudeau he doesn't care Need to keep cranking that interest rate up
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