M City Condos Location.House prices have risen by 50%. Canada has enjoyed nearly a decade of ultra-low interest rates, and a series of debt problems have grown in this environment.Please Visit: M City Condos Location to Get Your VVIP Registration Today!
Total government debt nearly doubled from C $1.3 trillion (US $1 trillion) in 2010 to more than C $25000 billion in 2020, of which the Canadian government increased its debt by 400 billion in 2020 alone. In addition, according to the statistics of the World Bank, the total debt of the Canadian government is more than twice the government revenue.
Home mortgages account for the vast majority of debt growth, with the overall Canadian house price index soaring from 80 in 2008-2020 to 120, an increase of 50 per cent, with house prices in Vancouver rising 36.4 per cent from June 2015 to June 2016, the highest in the world.
With house prices skyrocketing, the housing affordability index in Vancouver and Toronto has risen rapidly, of which the housing burden ratio in Vancouver requires a family not to eat or drink for more than 12 years before they can afford it. Home mortgage debt accounts for 70% of household debt, and the ratio of debt to disposable income is even more eye-popping-as high as 242% and 208%, respectively.
In addition, the Federal Reserve began to raise interest rates in 2018, and Canada followed very closely. Higher interest rates increase the cost of loans, and so does the corresponding interest payout, which will increase by C $1152 per household in Vancouver in 2019, not including the principal, according to data currently released in Canada. By 2020, the leverage ratio of residents has exceeded 100%.
Between 2000 and 2017, cities in Canada’s real home price study rose by almost 5% a year. In the 2020 UBS Global Real Estate Pumi Index, Canada’s two major cities all entered the top 10, with Toronto in third place and Vancouver in eighth place.