Global News ~ May 9th, 2024
Canada’s renters are showing more signs of financial stress amid rising debt costs than homeowners facing higher mortgage rates, according to a new analysis from the central bank.
The Bank of Canada released its Financial Stability Report for 2024 on Thursday.
Overall, the central bank said that signs of financial stress were rising back to normal levels after “sharp declines” during the COVID-19 pandemic.
But these signs of stress are most concentrated among Canadians who don’t have a mortgage, particularly renters.
Why are renters struggling?
People without a mortgage are falling behind more on credit card and auto loans payments, the Bank of Canada said. Rates of arrears in this category are close to pre-pandemic levels and continuing to grow for non-mortgage holders, according to the report.
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