I really don’t care about this, I’m more concerned about SP inflation.
It's been nearly 20 years since inflation has been this high in Canada
- Thread starter hamermill
- Start date
I really don’t care about this, I’m more concerned about SP inflation.
Our government doesn't seem too concerned about it. They're very intent on driving it even higher and overcooking the economy, which I personally find disastrous in light of the many other issues currently affecting it.
We've had 7 months in a row now with inflation over target, and the last two have been more than double the target.
We've had 7 months in a row now with inflation over target, and the last two have been more than double the target.
And we have a winner. Paul Martin.
Justin's financial record follows that of daddy.
Justin's financial record follows that of daddy.
I would say Chrétien was the winner. He was the one who righted our finances. Martin just carried on what was established before him, as did Harper until the recession tanked us.
Inflation is not only rampant in Canada. Canada's USMCA partners, Mexico and The USA have higher inflation figures than Canada. The majority of our prices and trades are linked to these two economies. It is also on the rise in a number of EU Nations thanks to the Pandemic and the sky high Gas and Oil prices globally!!
tradingeconomics.com
Inflation Rate - Countries - List
This page displays a table with actual values, consensus figures, forecasts, statistics and historical data charts for - Inflation Rate. This page provides values for Inflation Rate reported in several countries. The table has current values for Inflation Rate, previous releases, historical...
tradingeconomics.com
Well it could have something to do with the worldwide supply chain issues or it could be all the fault of whichever politician people want to blame it on. Tough choice.
Putting people out of work for 2 years and disrupting worldwide supply chains has that effect.
The alternative in Baby Scheer and Error O'Toole would not have been any better whatsoever. Canada are doing better than their trading partners USA and Mexico in that respect!!
We had a nice holiday for two years, printed literal tons of money and now we're due a payment.
This is a quote from this article.
" If it does persist, Canada's central bank may be forced to react by raising its lending rate to cool things down. Bank of Canada governor Tiff Macklem hinted at the bank's rethink on inflation in a speech last week, noting that supply disruptions "are proving to be more complicated and they could last a little longer than we previously thought." "
Look like the interest rates will go up in the near future. So whoever will need to renew their mortgages at the fixed 3 or 5 years interval will experience more pains seeing their mortgages' payments go up substantially. This will be bad for real estate markets in the GTA and Vancouver, B.C. where the recent home buyers in the past 10 years have already had very big mortgages.
Imagining people who have 1.3 million dollars mortgages' payments will have their monthly mortgage payments rise from the current 2.9% to future 10%. There will be many defaults on mortgage payments for sure when the interest rates go up to 10% or more.
" If it does persist, Canada's central bank may be forced to react by raising its lending rate to cool things down. Bank of Canada governor Tiff Macklem hinted at the bank's rethink on inflation in a speech last week, noting that supply disruptions "are proving to be more complicated and they could last a little longer than we previously thought." "
Look like the interest rates will go up in the near future. So whoever will need to renew their mortgages at the fixed 3 or 5 years interval will experience more pains seeing their mortgages' payments go up substantially. This will be bad for real estate markets in the GTA and Vancouver, B.C. where the recent home buyers in the past 10 years have already had very big mortgages.
Imagining people who have 1.3 million dollars mortgages' payments will have their monthly mortgage payments rise from the current 2.9% to future 10%. There will be many defaults on mortgage payments for sure when the interest rates go up to 10% or more.
House prices were ridiculously low then. My parents had the same: a mortgage back when interest was around 14.50% (your dad was very unlucky to hit that "sweet" spot of 20%). But their house cost just $62,000. Accounting for inflation, that'd be about $187,240 today. Except that very same house just went for $436,000 two months ago. Don't get me wrong, those high interest rates would still very much suck, but it's not so much better now in terms of interest payments, plus the cost of living in so many different areas has exploded.
Like previous person said, the home prices when your dad had the 20% mortgage interest was perhaps $55,000. So with the low home prices and high interest rates at that time, the borrowers including your dad were still able to manage the mortgage payments.
Nowadays are very different with the home prices in GTA and Vancouver, B. C. are so high for over 1 million dollars for a single detached homes when people have made their home purchased in the past 5 - 7 years. So if they are hit with the 10 - 20% mortgage interests versus the current 2 - 3% interest, they will most likely default on their big mortgage loans and payments.
