Police responded to the area of Beverly Street and Dundas Street North around 6 a.m. Monday for a report of a missing two-year-old boy.
Canada has highest household debt level in G7: CMHC deputy chief economist
Canada has the highest level of household debt in the G7, making its economy vulnerable to a global economic crisis, according to the country's housing agency.
In an analysis published Tuesday, Canada Mortgage and Housing Corp. deputy chief economist Aled ab Iorwerth said that the country's household debt has been rising "inexorably" due to rising home prices.
Mortgages currently make up about three-quarters of household debt in Canada. While household debt made up 80 per cent of the size of the overall Canadian economy during the 2008 recession, it rose to 95 per cent in 2010 and exceeded its size in 2021, he noted.
"By contrast, household debt in the U.S. fell from 100 per cent of GDP in 2008 to about 75 per cent in 2021," wrote ab Iorwerth.
"While U.S. households reduced debt, Canadians increased theirs and this will likely continue to increase unless we address affordability in the housing market."
Over the same period of time, household debt also dropped in the U.K. and Germany and was nearly unchanged in Italy.
While ab Iorwerth said not all debt is bad, high levels of debt can do significant damage when a recession or other negative economic event happens and leads to widespread job losses -- making it difficult, if not impossible, for many mortgage holders to pay back their debt.
While an upcoming CMHC report is expected to contain more information about how Canadians are coping with this year's higher interest rates, ab Iorewerth said the agency already sees "early warning signs" that more and more consumers are getting into financial trouble.
"When many households in an economy are heavily indebted, the situation can quickly deteriorate, such as what was witnessed in the U.S. in 2007 and 2008," he wrote.
"Canada is safeguarded by a sound institutional framework and prudent financial regulation. This ensures that most Canadian borrowers would be able to withstand currently elevated mortgage rates. But, in the event of a severe global economic downturn, Canada's high household debt will be a vulnerability."
One way to reduce the risk, according to the CMHC, is to improve housing affordability in Canada -- either through increasing housing supply or renovating and rebuilding the country's rental stock to be modern and attractive in order to prevent Canadians from feeling compelled to be homeowners.
A recent report from RBC Economics stated a looming recession and an unemployment rate projected to climb to 6.6 per cent by early 2024 are set to tip more Canadians into loan delinquencies and insolvencies.
The report stated with pandemic-related government support measures largely over and living costs now soaring, mortgage delinquencies could rise by more than a third of current levels over the coming year.
Consumer insolvencies could increase almost 30 per cent over the next three years, returning to pre-pandemic levels and likely remaining on an upward trajectory after that, RBC suggested.
This report by The Canadian Press was first published May 23, 2023.
CTVNews.ca Top Stories
A rare polar bear showed up on the shores of Iceland. Police shot it
A rare polar bear that was spotted outside a cottage in a remote village in Iceland was shot by police after being considered a threat, authorities said Friday.
Erik Menendez says Ryan Murphy's 'Monsters' is full of 'blatant lies'
Erik Menendez is slamming the 'dishonest portrayal' of his life in Netflix's 'Monsters: The Lyle and Erick Menendez Story.'
Here's one thing you can do to feel happier and more motivated at work, according to a new study
One simple action involving your smartphone could help improve your mental health at work, according to a new study.
Lebanon sees deadliest day of conflict since 2006 as Israeli strikes kill more than 270
Israeli strikes on Monday killed more than 270 Lebanese in the deadliest barrage since the 2006 Israel-Hezbollah war as the Israeli military warned residents in southern and eastern Lebanon to evacuate ahead of a widening air campaign against Hezbollah.
There are 'no restrictions' on the right to receive health services in Quebec for English speakers, according to a new clarification document issued by the Quebec Health Ministry on Monday.
A six-year-old boy from northeastern Manitoba who had been missing since last Wednesday has been found dead.
OceanGate co-founder says Titan built from scratch because no one else could meet needs
The co-founder of the company that owned the experimental submersible that imploded en route to the wreckage of the Titanic said Monday the company zeroed in on the use of carbon fibre for the doomed vessel because the company wanted a lightweight, less costly submersible that did not need to be tethered to an expensive mother ship.
Man accused in apparent assassination left note indicating he intended to kill Trump
The man accused in the apparent assassination attempt of Donald Trump at a golf course in Florida left behind a note saying that he intended to kill the former president and maintained in his car a handwritten list of dates and venues where Trump was to appear, the U.S. Justice Department said Monday.
Local Spotlight
Before influencers on social media, Canada’s Jeanne Beker was bringing the world of high fashion down to earth and as Calgary’s Glenbow Museum gets a major make-over, it will include a new exhibition showcasing the pop culture icon.
A sea lion swam free after a rescue team disentangled it near Vancouver Island earlier this week.
A Nova Scotian YouTuber has launched a mini-truck bookmobile.
Cole Haas is more than just an avid fan of the F.W. Johnson Wildcats football team. He's a fixture on the sidelines, a source of encouragement, and a beloved member of the team.
Getting a photograph of a rainbow? Common. Getting a photo of a lightning strike? Rare. Getting a photo of both at the same time? Extremely rare, but it happened to a Manitoba photographer this week.
An anonymous business owner paid off the mortgage for a New Brunswick not-for-profit.
They say a dog is a man’s best friend. In the case of Darren Cropper, from Bonfield, Ont., his three-year-old Siberian husky and golden retriever mix named Bear literally saved his life.
A growing group of brides and wedding photographers from across the province say they have been taken for tens of thousands of dollars by a Barrie, Ont. wedding photographer.
Paleontologists from the Royal B.C. Museum have uncovered "a trove of extraordinary fossils" high in the mountains of northern B.C., the museum announced Thursday.