Mark Carney, Bank of Canada governor issued a warning to Canadians on borrowing low interest rate loans. Our household debt-to-income ratio’s are extremely high which makes Canadians vulnerable.
Meanwhile Stats Canada revealed the ratio of debt to disposable income rose to 148.1 per cent. Canadians now owe $1.48 for every dollar of disposable income.
Low interest rates today does not mean low rates tomorrow. Canadian need to keep in mind that interest rates are likely to go up in the future and they should plan for it accordingly.