Nerdy By Nature: Canada Dances with Financial Disaster
That’s a lot of debt, eh.
Low rates motivate the middle class to borrow up to as much as 160% of their income. The average Canadian carries about $21,000 to 23,000 in non-Mortgage debt. Mortgage rates are sub-prime (below 2.7%) and houses keep getting built.
We’re still climbing out of the 2008 recession and rates have stayed at historic lows for — years.
We question the ceiling, as all good things must come to an end. Is Federal regulation enough to curve zealous credit usage, or will a housing bubble shift the entire country into a downward spiral?