'He's in our hearts': Family and friends still seek answers one year after Nathan Wise’s disappearance
It’s been a year since Nathan Wise went missing and his family is no closer to finding out what happened to him.
Canada has the highest level of household debt in the G7, making its economy vulnerable to a global economic crisis, according to the country's housing agency.
In an analysis published Tuesday, Canada Mortgage and Housing Corp. deputy chief economist Aled ab Iorwerth said that the country's household debt has been rising "inexorably" due to rising home prices.
Mortgages currently make up about three-quarters of household debt in Canada. While household debt made up 80 per cent of the size of the overall Canadian economy during the 2008 recession, it rose to 95 per cent in 2010 and exceeded its size in 2021, he noted.
"By contrast, household debt in the U.S. fell from 100 per cent of GDP in 2008 to about 75 per cent in 2021," wrote ab Iorwerth.
"While U.S. households reduced debt, Canadians increased theirs and this will likely continue to increase unless we address affordability in the housing market."
Over the same period of time, household debt also dropped in the U.K. and Germany and was nearly unchanged in Italy.
While ab Iorwerth said not all debt is bad, high levels of debt can do significant damage when a recession or other negative economic event happens and leads to widespread job losses -- making it difficult, if not impossible, for many mortgage holders to pay back their debt.
While an upcoming CMHC report is expected to contain more information about how Canadians are coping with this year's higher interest rates, ab Iorewerth said the agency already sees "early warning signs" that more and more consumers are getting into financial trouble.
"When many households in an economy are heavily indebted, the situation can quickly deteriorate, such as what was witnessed in the U.S. in 2007 and 2008," he wrote.
"Canada is safeguarded by a sound institutional framework and prudent financial regulation. This ensures that most Canadian borrowers would be able to withstand currently elevated mortgage rates. But, in the event of a severe global economic downturn, Canada's high household debt will be a vulnerability."
One way to reduce the risk, according to the CMHC, is to improve housing affordability in Canada -- either through increasing housing supply or renovating and rebuilding the country's rental stock to be modern and attractive in order to prevent Canadians from feeling compelled to be homeowners.
A recent report from RBC Economics stated a looming recession and an unemployment rate projected to climb to 6.6 per cent by early 2024 are set to tip more Canadians into loan delinquencies and insolvencies.
The report stated with pandemic-related government support measures largely over and living costs now soaring, mortgage delinquencies could rise by more than a third of current levels over the coming year.
Consumer insolvencies could increase almost 30 per cent over the next three years, returning to pre-pandemic levels and likely remaining on an upward trajectory after that, RBC suggested.
This report by The Canadian Press was first published May 23, 2023.
It’s been a year since Nathan Wise went missing and his family is no closer to finding out what happened to him.
Dozens of Ontarians are expressing frustration in the province’s health-care system after their family doctors either dropped them as patients or threatened to after they sought urgent care elsewhere.
An Ottawa pizzeria is being recognized as one of the top 20 deep-dish pizzas in the world.
Amazon's paid subscription service provides free delivery for online shopping across Canada except for remote locations, the company said in an email. While customers in Iqaluit qualify for the offer, all other communities in Nunavut are excluded.
The fire burning near Fort McMurray grew from 25 hectares to 5,500 hectares over the weekend.
Russia’s President Vladimir Putin began a Cabinet shakeup on Sunday, proposing the replacement of Sergei Shoigu as defence minister as he begins his fifth term in office.
Police are searching for a male suspect after a man was “slashed in neck” on Sunday morning in downtown Toronto and died.
There were some scary moments for several people on a northern Ontario highway caught on video Thursday after a chain reaction following a truck fire.
Health Canada announced various product recalls this week, including electric adapters, armchairs, cannabis edibles and vehicle components.
English, history, entertainment, math and geography: high school trivia teams could be quizzed on any of it when they compete at the Reach for the Top Nationals in Ottawa in June.
An Ottawa pizzeria is being recognized as one of the top 20 deep-dish pizzas in the world.
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
A Listowel, Ont. man, drafted by the Hamilton Tigercats last week, is also getting looks from the NFL, despite only playing 27 games of football in his life.
The threat of zebra mussels has prompted the federal government to temporarily ban watercraft from a Manitoba lake popular with tourists.
A small Ajax dessert shop that recently received a glowing review from celebrity food critic Keith Lee is being forced to move after a zoning complaint was made following the social media influencer’s visit last month.
The Canada Science and Technology Museum is inviting visitors to explore their poop. A new exhibition opens at the Ottawa museum on Friday called, 'Oh Crap! Rethinking human waste.'
The Regina Police Service says it is the first in Saskatchewan and possibly Canada to implement new technology in its detention facility that will offer real-time monitoring of detainees’ vital health metrics.
Just as she had feared, a restaurant owner from eastern Quebec who visited Montreal had her SUV stolen, but says it was all thanks to the kindness of strangers on the internet — not the police — that she got it back.