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Canada's Economic Warning: Mortgage Renewal Crisis Ahead
January 17, 2024 | Posted by: Angela Robinson
Brace for impact! Canada faces a looming mortgage renewal crisis, with nearly $1 trillion due by 2026. This surge in payments will trigger a demand shock, stressing the economy.
To prevent a crisis, the Bank of Canada must act swiftly. Government of Canada bonds are predicted to outperform in 2024.
Two-thirds of mortgages renew between 2024-2026, locking in higher interest rates. Average payments have already surged 30%, set to rise another 15% by 2024, 30% by 2025, and 45% by 2026.
Themimpact is staggering: a 20% reduction in national disposable income by 2026. Brace for housing market shifts, defaults, and a Bank of Canada rate cut in early 2024.
Smart investors, take note! Government of Canada bonds are optimistic, while the gap between Canadian and U.S. rates is set to widen.
Need mortgage advice? Contact us at 780 701 3888 or marc@albertamortgagepros.ca
Article: https://ca.finance.yahoo.com/news/david-rosenberg-canadas-menacing-mortgage-154856836.html
