{"id":9077,"date":"2018-05-18T10:10:06","date_gmt":"2018-05-18T17:10:06","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=9077"},"modified":"2018-05-12T09:03:21","modified_gmt":"2018-05-12T16:03:21","slug":"the-reasons-canadian-homeowners-will-stay-in-the-black-this-year","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2018\/05\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\/","title":{"rendered":"The Reasons Canadian Homeowners Will Stay in the Black This Year"},"content":{"rendered":"

Canadians have some of the highest levels of household debt in the world, which has some economists worried, now that interest rates are on the rise. But according to one bank, things aren\u2019t as bad as they might appear.<\/p>\n

\u201cThere are widespread concerns about the vulnerability of Canadian households to rising interest rates,\u201d reads a recent report from the National Bank. \u201cWhile some borrowers will undoubtedly be more sensitive to higher rates, the current structure of household debt suggests that the coming payment shock will be relatively subdued for the economy as a whole.\u201d<\/p>\n

The reason? As Canadian household debt has grown, the average disposable income has been keeping up. According to the National Bank, real disposable income has grown an average of 2.5% per year over the last 10 years.<\/p>\n

And while much of Canadian household debt is made up of mortgage debt, the bank is quick to note that only 20 per cent of mortgage debt will be coming up for renewal this year, despite what some outlets have been reporting.<\/p>\n

\u201cSome pundits have been circulating inaccurate information recently,\u201d reads the report. \u201cOne is the affirmation that almost half of Canadian mortgages have been or will be up for renewal this year, suggesting an imminent payments shock from the rise of interest rates\u2026This is false\u2026Since the great majority of mortgage borrowers opt for 5-year terms ….. it\u2019s hard to imagine much more than 20% of mortgage debt coming up for renewal each year.\u201d<\/p>\n

According to the bank\u2019s interest-rate scenario, the rise of the interest rate for households exposed to rate increases should be roughly 0.33% of their disposable income in 2018. The Bank of Canada hiked the overnight rate to 1.25% in January, and is widely expected to do so again before the end of the year.<\/p>\n

The bank is quick to note that a rise in the interest rate does not necessarily mean an equal rise in mortgage payments \u2014 the increase in payment at the time of renewal is roughly 60% of the increase in the interest rate, while only 40% of variable-rate mortgages have payments that are fixed over the term.<\/p>\n

\u201cWith these two considerations taken into account, we calculate that the payment shock would amount to only 0.24% of aggregate disposable income in 2018 and 0.26% in 2019,\u201d reads the report. \u201cConsidering that real disposable income has grown an average 2.5% annually over the last 10 years, that\u2019s a slight touch on the brakes, not the drastic slowdown of Canadian consumer spending mooted by the current buzz.\u201d<\/p>\n

Here’s Why Canadian Homeowners Will Stay in the Black This Year Despite Rising Interest Rates<\/a> by Sarah Niedoba | Buzz Buzz Home<\/p>\n","protected":false},"excerpt":{"rendered":"

Canadians have some of the highest levels of household debt in the world, which has some economists worried, now that interest rates are on the rise. But according to one … [read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-9077","post","type-post","status-publish","format-standard","hentry","category-market-updates"],"yoast_head":"\nThe Reasons Canadian Homeowners Will Stay in the Black This Year • Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2018\/05\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"The Reasons Canadian Homeowners Will Stay in the Black This Year • Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"Canadians have some of the highest levels of household debt in the world, which has some economists worried, now that interest rates are on the rise. But according to one … [read more]\" \/>\n<meta name=\"twitter:creator\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:site\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rory Clipsham\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/05\\\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/05\\\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\\\/\"},\"author\":{\"name\":\"Rory Clipsham\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"headline\":\"The Reasons Canadian Homeowners Will Stay in the Black This Year\",\"datePublished\":\"2018-05-18T17:10:06+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/05\\\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\\\/\"},\"wordCount\":445,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"articleSection\":[\"Market Updates\"],\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/05\\\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/05\\\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\\\/\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/05\\\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\\\/\",\"name\":\"The Reasons Canadian Homeowners Will Stay in the Black This Year • Rory C Real Estate | Oakwyn Realty\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\"},\"datePublished\":\"2018-05-18T17:10:06+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/05\\\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\\\/#breadcrumb\"},\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/05\\\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/05\\\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The Reasons Canadian Homeowners Will Stay in the Black This Year\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\",\"name\":\"Rory C Real Estate | Oakwyn Realty\",\"description\":\"Rory C Real Estate Updates | Home Selling & Buying\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-CA\"},{\"@type\":[\"Person\",\"Organization\"],\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\",\"name\":\"Rory Clipsham\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-CA\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"contentUrl\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"width\":504,\"height\":504,\"caption\":\"Rory Clipsham\"},\"logo\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\"},\"sameAs\":[\"http:\\\/\\\/www.roryc.ca\\\/\",\"https:\\\/\\\/www.facebook.com\\\/pg\\\/BurnabyandCoquitlamHomes\\\/about\\\/?ref=page_internal\",\"https:\\\/\\\/www.instagram.com\\\/roryclipshamhomes\\\/\",\"https:\\\/\\\/x.com\\\/RoryClipsham\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Reasons Canadian Homeowners Will Stay in the Black This Year • Rory C Real Estate | Oakwyn Realty","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.roryc.ca\/blog\/2018\/05\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\/","twitter_card":"summary_large_image","twitter_title":"The Reasons Canadian Homeowners Will Stay in the Black This Year • Rory C Real Estate | Oakwyn Realty","twitter_description":"Canadians have some of the highest levels of household debt in the world, which has some economists worried, now that interest rates are on the rise. But according to one … [read more]","twitter_creator":"@RoryClipsham","twitter_site":"@RoryClipsham","twitter_misc":{"Written by":"Rory Clipsham","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.roryc.ca\/blog\/2018\/05\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\/#article","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/2018\/05\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\/"},"author":{"name":"Rory Clipsham","@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"headline":"The Reasons Canadian Homeowners Will Stay in the Black This Year","datePublished":"2018-05-18T17:10:06+00:00","mainEntityOfPage":{"@id":"https:\/\/www.roryc.ca\/blog\/2018\/05\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\/"},"wordCount":445,"commentCount":0,"publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"articleSection":["Market Updates"],"inLanguage":"en-CA","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.roryc.ca\/blog\/2018\/05\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.roryc.ca\/blog\/2018\/05\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\/","url":"https:\/\/www.roryc.ca\/blog\/2018\/05\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\/","name":"The Reasons Canadian Homeowners Will Stay in the Black This Year • Rory C Real Estate | Oakwyn Realty","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/#website"},"datePublished":"2018-05-18T17:10:06+00:00","breadcrumb":{"@id":"https:\/\/www.roryc.ca\/blog\/2018\/05\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\/#breadcrumb"},"inLanguage":"en-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.roryc.ca\/blog\/2018\/05\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.roryc.ca\/blog\/2018\/05\/the-reasons-canadian-homeowners-will-stay-in-the-black-this-year\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.roryc.ca\/blog\/"},{"@type":"ListItem","position":2,"name":"The Reasons Canadian Homeowners Will Stay in the Black This Year"}]},{"@type":"WebSite","@id":"https:\/\/www.roryc.ca\/blog\/#website","url":"https:\/\/www.roryc.ca\/blog\/","name":"Rory C Real Estate | Oakwyn Realty","description":"Rory C Real Estate Updates | Home Selling & Buying","publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.roryc.ca\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-CA"},{"@type":["Person","Organization"],"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7","name":"Rory Clipsham","image":{"@type":"ImageObject","inLanguage":"en-CA","@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","url":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","contentUrl":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","width":504,"height":504,"caption":"Rory Clipsham"},"logo":{"@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg"},"sameAs":["http:\/\/www.roryc.ca\/","https:\/\/www.facebook.com\/pg\/BurnabyandCoquitlamHomes\/about\/?ref=page_internal","https:\/\/www.instagram.com\/roryclipshamhomes\/","https:\/\/x.com\/RoryClipsham"]}]}},"_links":{"self":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/9077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/comments?post=9077"}],"version-history":[{"count":1,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/9077\/revisions"}],"predecessor-version":[{"id":9078,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/9077\/revisions\/9078"}],"wp:attachment":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/media?parent=9077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/categories?post=9077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/tags?post=9077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}