Sentences with phrase «of household debt for»

Unfortunately, we have no detailed information on the distribution of household debt for investment housing.

Not exact matches

Debt levels for the average Canadian household are moving down (perhaps we've been taking those warnings from the Bank of Canada to heart), and as a result there's been «modest» growth in consumer spending, said Ferley.

TORONTO, May 1 - The Canadian dollar fell to a four - week low against its U.S. counterpart on Tuesday before paring its decline, as Bank of Canada Governor Stephen Poloz said the outlook for the domestic economy is good despite the overhang of high household debt.

All sectors recorded an increase in debt loading from the end of 2016, lifting by $ 4.5 trillion, $ 6.5 trillion, $ 4.5 trillion and $ 5.5 trillion respectively for households, non-financial corporates, governments and the financial sector.

Between 2008 and 2012, the federal government implemented a handful of ad - hoc policies meant to deter poorer households from taking on excessive debt, including the reduction of the maximum amortization period for government - backed home loans to 25 years from 40 years.

The home equity line of credit has allowed millions of households to borrow against their properties, providing cash for everything from renovations to investing to debt consolidation.

One of my constant points on this blog for the last several years has been that households» refinancing of their mortgage debt at lower and lower rates has put more money in their pockets for spending and for paying down debt.

While $ 1.3 trillion won't do much to change the outlook for inflation or future debt crises, it sure would give a lot of households one last chance to set things on a more positive course.

Benjamin Tal, an economist with CIBC, reported in a study earlier this year that heavy borrowers, those with household debt - to - gross income ratios above 160, accounted for 34 % of all borrowers compared to 26 % in 2007.

The negative consequences of pushing more debt on households is also obvious: more loans become uncollectible and go into default, creating more loan losses for banks.

He devoted a chunk of his maiden speech to challenging the notion that further regulation is needed for credit cards, arguing two - thirds of Canadians pay off their balances every month, meaning they incur no interest at all, and that credit cards account for just 5 % of total household debt.

Loan delinquency climbed to 11.2 percent in the last quarter of 2016, the highest rate for all types of household debt.

The Bank of Canada, for one, has carefully assessed the economic risks of consumer debt in order to determine how quickly it can raise interest rates without piling on too many debt - servicing costs for over-stretched households.

For several years, policy - makers have been introducing new regulations, such as restrictions on mortgage credit, to curb the build - up of household debt.

(Residential mortgage credit reliably accounts for about two - thirds of total household debt; the rest is composed of lines of credit, credit card and other consumer debt instruments.)

he general trend was for average household debt to move in the opposite direction of the interest rate,» Statscan noted.

«The general trend was for average household debt to move in the opposite direction of the interest rate,» Statscan noted.

Households headed by an employee working for someone else owed $ 5,672 in credit card debt and paid annual interest of $ 843 on credit cards.

Meanwhile, the total household debt service ratio, measured as total obligated payments of principal and interest as a proportion of household disposable income for both mortgage and non-mortgage debt, remained flat at 13.8 per cent in the fourth quarter.

Basically, he proposes that the Feds send a check for $ 2000 each to the bottom 80 % of taxpaying households (all 175 million of them) with the caveat that the entire $ 2000 must be spent on debt reduction (student loans, credit cards, mortgages etc.).

The low level of interest rates means that even though debt levels are higher, the share of household income devoted to paying mortgage interest is lower than it has been for some time.

Risks associated with the Consumer Discretionary sector include, among others, apparel price deflation due to low - cost entries, high inventory levels and pressure from e-commerce players; reduction in traditional advertising dollars; increasing household debt levels that could limit consumer appetite for discretionary purchases; declining consumer acceptance of new product introductions; and geopolitical uncertainty that could impact consumer sentiment.

However, in comparison to households that only hold owner - occupier debt, there is evidence that investors tend to accumulate higher savings in the form of other assets (such as paying ahead of schedule on a loan for their own home, as well as accumulating equities, bank accounts and other financial instruments).

Without a massive transfer of wealth from the state sector to the household sector it will be impossible, I would argue, for GDP growth rates of anything above 3 - 4 % — and perhaps even less — to occur without a further unsustainable increase in debt, whether that increase occurs inside or outside the formal banking system and whether or not discipline has been imposed on borrowers.

Meanwhile, delinquency rates for each form of household debt declined, with about 8.1 percent of outstanding debt in some stage of delinquency, compared with 8.6 percent the previous quarter.

But closing down unnecessary capacity can pay for itself, even if unemployed workers are temporarily put on the government payroll (causing debt to rise, but usually by less than it had before), but only temporarily as Beijing takes other measures to boost household income through wealth transfers from the state and so to boost consumption, a form of demand which is likely to be more labor intensive than the demand created in the process of over-capacity.

To obtain this figure, we looked at data reported by the Federal Reserve for Outstanding Revolving Debt - we then divided that number by the number of card - carrying households each year.

As of June 2017, the average credit card debt for these households is $ 10,955.

Put differently, the only way to reduce debt is to allocate the cost to some sector of the economy, and broadly speaking these sectors are the household sector, the private sector, the state sector, and the various more specialized subsectors within these three — for example households can consist of rich households versus the rest, the state sector can be divided among the central government and the provincial governments, the private sector can consist of SMEs, large corporations, labor - intensive industries, capital - intensive industries, the export sector, etc..

One reason for trying to understand this complex picture is that the level of household debt is relatively high.

«He doesn't want to leave any question about the independence of the Governor of the Bank of Canada, but we have a situation under the Conservative government that has allowed record household debt... and the bank is really caught between a rock and a hard place, because these high debt levels create pressure for higher interest rates, but inflation is very low.

Bill Robson, president of the C.D. Howe Institute, a public policy think - tank, said one of the greatest challenges for the middle class is saving more for retirement at the same time wages aren't growing nearly as fast and household debt piles up.

There is little risk to overshooting on inflation in the near - term, and even if there were, anything that helps facilitate a reduction in the real burden of debt for Canadian households is not something I'd bemoan.

Minister of Finance Bill Morneau is trying to balance soaring household debt levels against the need for strength in consumer spending.

However, this is changing, and the increase in the level of household debt over the past decade is a major shift, with significant knock - on implications for consumption.

Although it is less than 2 per cent of total household debt, growth in margin lending has accounted for over a fifth of the rise in banks» personal lending (excluding credit cards) since 1996.

While such a rate of expansion will clearly not be sustainable in the longer run, there is little sign at this stage that the appetite for borrowing has been restrained by the recent increases in interest rates, even though the higher debt burden of households might be expected to make them more responsive to interest rate changes.

On the heels of multiple warnings from the Bank of Canada that Canadians have taken on too much household debt for comfort (we hold the dubious distinction of having the worst consumer debt to financial -LSB-...]

Even so, the rate of debt accumulation — for government, corporations and households — has materially slowed, suggesting that the worst of deleveraging headwinds are behind us.

Canadians have a debt problem — the key measure of a consumer's debt burden now stands at a record level — which is why Finance Minister Jim Flaherty and Mr. Poloz's predecessor Mark Carney urged households for months to put a lid on it.

Chart 4 compares household debt as a percentage of GDP for Canada and the US from 1990 onwards.

In a seven page report released Friday, Beata Caranci says the need for financial literacy has never been higher because of record low interest rates and household debt growing faster than income, something the millennial population seems unprepared to deal with.

We believe the main factor that drove the most significant bull market in U.S. stock market history (household debt that enabled unrestricted consumption of everything from goods and services to homes) will reverse and continue the deleveraging process that will more than likely continue for a very long time.

The Basic level is almost the only level used by the banks for assessment of a four - person family (two adults and two school - age children), it estimates household expenses (including everything apart from rent / mortgage debt costs) of $ 32,400 per year.

Small wonder that couples with children, according to Statistics Canada, account for half of all the household debt in Canada.

That is just a little over 4 years, and we can expect a continuation of deleveraging for many years to come - we have a long way to go in order to get back to the levels of household debt relative to GDP or Personal Disposable Income (PDI).

The growth of gross household debt has seen the household sector's debt to income ratio on a gradually rising trend for much of the past decade.

In recent years, while the number of people holding credit - card debt has been decreasing, the average debt for those households carrying a balance has been on the rise.

In contrast to IMF loans to support the kleptocrats» banks and new Cold War asset grabs from the Eastern border provinces with Russia, Ukraine's sale of bonds to Russia's sovereign debt fund and its contracts signed for gas purchases were negotiated by a democratically elected government, at prices that subsidized domestic industry and also household consumption.

Housing market developments have been at the heart of the divergence, with a house price boom contributing to rising household wealth and an increased appetite for debt in France and Spain, while real incomes and house prices have been flat or falling in the other major euro - zone economies.