Meanwhile,
debt servicing costs already consume an additional 10 % and are likely to rise.
Not exact matches
Yet the Board had
already aggressively eased monetary policy, delivering the largest reduction in
debt -
servicing costs to households in modern times.
In addition, the mortgage market looks set for a particularly heavy year of renewals in an environment where
debt -
servicing costs are
already rising at the fastest pace in a decade.
But here's why we can say givebacks are in play: With rising shortfalls forecast for the coming years, with little appetite at the Capitol for raising taxes again, with
debt and pension
costs rising, and with state - financed, outside
services such as group homes
already squeezed, there are scant other places to turn.
Even if the path for tightening is described as ultra-slow and measured, investors will need to weigh just how much the higher
costs of borrowing might adversely impact the
cost of
debt servicing for corporations; that is, we may see further erosion of profitability from an earnings picture that is
already flat.
That, coupled with rising
debt servicing costs and housing tax measures in B.C. and Ontario, adds more negative psychology for a detached house market that's
already softening.