Household debt in Canada hits all time high as interest rates remain low

There is some good news for anyone with a variable mortgage.

Toronto Dominion bank is expecting borrowing costs to remain near record lows for the rest of the year.

The latest data suggests a lot of Canadians will be hoping the Bank of Canada hikes rates later rather than sooner.

Household debt has hit an all time high of $1.5-trillion but rock bottom interest rates are seducing many shoppers to buying more, such as iPad’s and televisions.

“The question is can they afford them? and when borrowing rates have been as low as they have it has created the capacity for Canadians to take advantage of that. The worry is that you could get a very significant, sudden change in the rate environment.” said Derek Burlton, Deputy Chief Economist at TD Bank Group.

Burlton told 680News there are just too many risks out there right now for the Bank of Canada to pull the trigger on hikes in July and rates may not start to rise till early next year now.  That gives those in the red some time to get their finances in order and attempt to pay off some of their debt.

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