Canadians to borrow and spend more in 2021
But debt-wise, they may be less vulnerable than they were pre-COVID
- Mortgage debt has surged, but lower rates and higher incomes have made debt servicing more manageable
- Canadians’ mix of debt is slightly less interest-rate sensitive than it was pre-COVID
- Household excess savings and real-estate asset values have both increased more than mortgage balances
- The concern remains that there are households caught in the middle
- Pent-up demand and large savings stockpile to boost spending in H2/2021
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