OTTAWA — Some Canadians who took out mortgages in 2020-21 could see their monthly payments jump by as much as 45 per cent in 2025-26, given rising rates, according to a Bank of Canada scenario released on Thursday.
Elevated levels of inflation – which is currently at a 31-year-high – could also mean that households allocate more of their income to food and gas if wage increases do not keep pace, the central bank said in its annual financial system review.
“In this context, highly indebted households are especially vulnerable to a loss of income,” it said.
Source: Financial Post
