'Almost everything we’ve done in response to the crisis involves borrowing.'
A key measure of how well households can handle their debt will hit its worst level on record, CMHC predicts. That’s because unpaid bills are piling up even as households are seeing lower incomes.
“Almost everything we’ve done in response to the crisis involves borrowing,” Siddall said. “Just as governments are taking on more debt … mortgage deferrals adding to household debt. CMHC sees house prices in Canada falling between 9 per cent and 18 per cent over the next 12 months. Siddall warned that first-time homebuyers who are early into their mortgages could find themselves underwater ― meaning their mortgage could be larger than the market value of their house.
He noted that, as the underwriter of a majority of insured mortgages in Canada, CMHC will be on the hook for paying off banks’ bad mortgages ― which he estimates could cost some $9 billion in this crisis. Siddall said the CMHC is looking at pulling back on its underwriting of home lending ― a move that could potentially reduce Canadians’ access to mortgages.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
It's now recommended that Canadians wear face masksCanada's chief public health officer is officially recommending Canadians wear non-medical face masks when maintaining a two-metre distance isn't possible. Dr. Theresa Tam told reporters that the language on masks has shifted from 'permissive' to a 'specific recommendation.'
Read more »
National direction on use of face masks coming today: TrudeauPrime Minister Justin Trudeau says a national recommendation on when and where Canadians should be wearing face masks to reduce the spread of COVID-19 is coming later today.
Read more »
Public Health Agency of Canada now recommends wearing non-medical face masksCanada's chief public health officer is officially recommending Canadians wear non-medical face masks when maintaining a two-metre distance isn’t possible.
Read more »
For pandemic-era homebuyers, virtual tours and patience can pay offAs the country buckles in for its next great recession, housing sales have plummeted to their lowest levels since 1984, and prices in some areas have become more favourable for buyers.
Read more »
Canada Competition Bureau Hits Facebook With $9 Million PenaltyThe social media company says it doesn't agree with the bureau's conclusions that it misled Canadians.
Read more »