July 3, 2022

The Queens County Citizen

Complete Canadian News World

Rising mortgages: Girard is not worried about depression

Rising mortgages: Girard is not worried about depression

Although the Bank of Canada has sounded the alarm about home loan and rising housing prices, the possibility of a recession has not worried Quebec Finance Minister Eric Girard.

Also read: The perfect hurricane on the horizon: 45% higher mortgage payments

Also read: Quebec doubles its tax credit for first property purchases

Also read: Debt Owners: Tie Your Tuck!

“We have a growth rate of 2% in 2023,” the minister explained in the corridors of the National Assembly. The Bank of Canada said yesterday that it is exacerbating those vulnerabilities by tightening real estate, home loans and tightening monetary duties.

Referring to statements made by Mr Girard Bank of Canada Governor Tiff McClellan, he said on Thursday that home loans and rising home prices were putting the Canadian economy in a precarious position.

“But that does not mean there will be a recession,” the finance minister added.

In fact, in order for the scenario of depression to materialize, it takes the similarity of a series of factors, Tiff McClem explained. The net slowdown in the economy and the rise in the unemployment rate should be combined with rising home debt and rising housing prices.

“Loss of income will enable heavily indebted families to significantly reduce the cost of continuing their mortgage payments. In addition, a large correction in home prices will reduce home wealth and credit access, especially for most debtors. , ”Said McClellan.

READ  It's Tesla's environment and everybody else is paying out rent