MNI BRIEF: Half Of Canada Mortgage Holders Had Bill Troubles

Half of Canadian mortgage holders faced difficulty paying bills last year according to a federal housing agency survey, often because of worsening economic circumstances.

The 51% of borrowers facing that situation increased from 42% last year in the survey by Canada Mortgage and Housing Agency. Credit card payments were the most frequent difficulty with 26% of about 4,000 respondents citing it as an issue. Mortgage payments were next at 17%, with 14% missing a payment outright. 

Strain related to high interest rates is easing with the Bank of Canada cutting borrowing costs seven times since June from the highest in decades. Distress from job losses is now intensifying amid a trade war with the U.S. Canadian unemployment has climbed to the highest since 2017 outside of the pandemic and some economists see a recession pushing layoffs higher this year. (See: MNI INTERVIEW: Dodge Sees BOC Cutting To Low End Of Neutral)