{"id":41778,"date":"2023-12-14T14:00:30","date_gmt":"2023-12-14T14:00:30","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2023\/12\/14\/heres-how-canadians-are-coping-with-higher-interest-in-5-charts\/"},"modified":"2023-12-14T14:00:30","modified_gmt":"2023-12-14T14:00:30","slug":"heres-how-canadians-are-coping-with-higher-interest-in-5-charts","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2023\/12\/14\/heres-how-canadians-are-coping-with-higher-interest-in-5-charts\/","title":{"rendered":"Here&#8217;s how Canadians are coping with higher interest in 5 charts"},"content":{"rendered":"<p> \n<\/p>\n<div id=\"\">\n<header aria-label=\"Beginning of Article\" class=\"article-header article-header--story\">\n<nav aria-label=\"Breadcrumb\" class=\"breadcrumbs\" data-aqa=\"nav-breadcrumb\">\n<p>Breadcrumb Trail Links<\/p>\n<ol class=\"breadcrumbs__items list-unstyled\">\n<li class=\"breadcrumbs__item\">Personal Finance<\/li>\n<li class=\"breadcrumbs__item\">News<\/li>\n<li class=\"breadcrumbs__item\">Economy<\/li>\n<li class=\"breadcrumbs__item\">Debt<\/li>\n<\/ol>\n<\/nav>\n<div class=\"article-header__detail\">\n<div class=\"article-header__detail__texts\">\n<p class=\"article-subtitle\">Costs of paying down debt climbed to record while net worth declined<\/p>\n<div class=\"article-meta\">\n<p><span class=\"published-date__since\">Published Dec 14, 2023<\/span> \u00a0\u2022\u00a0 <span class=\"updated-date__since\">Last updated 1\u00a0hour ago<\/span> \u00a0\u2022\u00a0 <span class=\"published-date__word-count\">3 minute read<\/span><\/p>\n<\/p><\/div>\n<\/div>\n<figure class=\"featured-image\" data-aqa=\"featured-image\"><picture class=\"featured-image__ratio\"><source media=\"(min-width: 1200px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/no1213pedestrians.jpg?quality=90&amp;strip=all&amp;w=564&amp;h=423&amp;type=webp&amp;sig=ra5XfxR5G_76dYk0znQVsQ,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/no1213pedestrians.jpg?quality=90&amp;strip=all&amp;w=1128&amp;h=846&amp;type=webp&amp;sig=tnDR4TnEkj_YmbxVkhLLKw 2x\" type=\"image\/webp\"><source media=\"(min-width: 1200px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/no1213pedestrians.jpg?quality=90&amp;strip=all&amp;w=564&amp;h=423&amp;type=jpg&amp;sig=SvxYqdJY0OM_H2zqTSVEWw,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/no1213pedestrians.jpg?quality=90&amp;strip=all&amp;w=1128&amp;h=846&amp;type=jpg&amp;sig=oFpBluHIwdyoB03LGqRVRg 2x\" type=\"image\/jpeg\"><source media=\"(min-width: 768px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/no1213pedestrians.jpg?quality=90&amp;strip=all&amp;w=472&amp;h=354&amp;type=webp&amp;sig=REO5g3hmi7soEX7qP2ru7w,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/no1213pedestrians.jpg?quality=90&amp;strip=all&amp;w=944&amp;h=708&amp;type=webp&amp;sig=RdUWpz-nbe9Vpr0fDjrK6A 2x\" type=\"image\/webp\"><source media=\"(min-width: 768px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/no1213pedestrians.jpg?quality=90&amp;strip=all&amp;w=472&amp;h=354&amp;type=jpg&amp;sig=THQ9Qq9XgHNwee583FnvXg,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/no1213pedestrians.jpg?quality=90&amp;strip=all&amp;w=944&amp;h=708&amp;type=jpg&amp;sig=PK0nCXnmi0tEjKuwJQ0gQw 2x\" type=\"image\/jpeg\"><source media=\"(max-width: 767px)\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/no1213pedestrians.jpg?quality=90&amp;strip=all&amp;w=288&amp;h=216&amp;type=webp&amp;sig=ybJfx0w9IOTF2_kXotdv8g,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/no1213pedestrians.jpg?quality=90&amp;strip=all&amp;w=576&amp;h=432&amp;type=webp&amp;sig=uMmiTLqnAeFg23hwXCN3hA 2x\" type=\"image\/webp\"><\/source><\/source><\/source><\/source><\/source><\/picture><figcaption class=\"featured-image__caption image-caption\"><span class=\"caption\">Pedestrians walk down St. Catherine Street in Montreal. <\/span> <span class=\"credit\">Photo by Ryan Remiorz\/The Canadian Press files<\/span><\/figcaption><\/figure>\n<\/div>\n<\/header>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p data-async=\"\">Canadians continue to be hit by the climb in Bank of Canada interest rates, with the costs of paying down debt rising to a record in the third quarter while net worth declined, according to Statistics Canada household finance data released Dec. 13.<\/p>\n<p>Here are five charts that show how higher interest rates have impacted Canadians, along with economists\u2019 reaction to the data:<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_2\">\n<section aria-describedby=\"advertisment6856023275667074157093032103510016\" class=\"ad\">\n<p>Advertisement 2<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-2\">\n<div class=\"ad__inner__container\" data-ad=\"[[6,6],[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-interscroller=\"6x6\" data-ad-loc=\"2\" data-ad-mobile=\"[[6,6],[320,50],[300,50],[300,250],[300,600]]\" data-aqa=\"advertisement\" id=\"ad-2\" style=\"--desktopHeight:250px;--mobileHeight:600px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<div class=\"article-block article-block-bg article-content__sign-in-group hidden\" data-aqa=\"identity-sign-in\" data-async=\"\" id=\"article-block\">\n<section class=\"row\">\n<header class=\"identity-intro col-xs-12 col-md-6 flex-justify-center\">\n<div class=\"col-xs-12 col-sm-10 col-md-10\"><img loading=\"lazy\" decoding=\"async\" alt=\"Financial Post\" class=\"market-logo\" height=\"37\" src=\"https:\/\/dcs-static.gprod.postmedia.digital\/15.0.2\/websites\/images\/identity\/logo-identity-fp.svg\" width=\"280\"\/><\/p>\n<div class=\"intro-body__premium hidden\">\n<p>THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY<\/p>\n<p class=\"identity-intro__description\">Subscribe now to read the latest news in your city and across Canada.<\/p>\n<ul class=\"list-unstyled list-checkmark\">\n<li>Exclusive articles from Barbara Shecter, Joe O&#8217;Connor, Gabriel Friedman, Victoria Wells and others.<\/li>\n<li>Daily content from Financial Times, the world&#8217;s leading global business publication.<\/li>\n<li>Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.<\/li>\n<li>National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\n<li>Daily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n<div class=\"intro-body__register hidden\">\n<p>SUBSCRIBE TO UNLOCK MORE ARTICLES<\/p>\n<p class=\"identity-intro__description\">Subscribe now to read the latest news in your city and across Canada.<\/p>\n<ul class=\"list-unstyled list-checkmark\">\n<li>Exclusive articles from Barbara Shecter, Joe O&#8217;Connor, Gabriel Friedman, Victoria Wells and others.<\/li>\n<li>Daily content from Financial Times, the world&#8217;s leading global business publication.<\/li>\n<li>Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.<\/li>\n<li>National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\n<li>Daily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n<div class=\"intro-body__anonymous\">\n<p>REGISTER TO UNLOCK MORE ARTICLES<\/p>\n<p class=\"identity-intro__description\">Create an account or sign in to continue with your reading experience.<\/p>\n<ul class=\"list-unstyled list-checkmark\">\n<li>Access articles from across Canada with one account.<\/li>\n<li>Share your thoughts and join the conversation in the comments.<\/li>\n<li>Enjoy additional articles per month.<\/li>\n<li>Get email updates from your favourite authors.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/header>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<h2>Debt costs rise<br \/><img loading=\"lazy\" decoding=\"async\" alt=\"Debt service ratio chart\" class=\"alignnone size-full wp-image-3545127\" height=\"787\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/debt-service-ratio-1.png\" width=\"1000\"\/><\/h2>\n<p>The amount Canadians are paying to cover the costs of debt rose to a record in the third quarter of 2023, with the household debt service ratio increasing to 15.2 per cent from 15.1 per cent in Q2, Statistics Canada said.<\/p>\n<p>Most of the increase can be attributed to a record rise in interest payments over the past six quarters, up from 5.9 per cent of disposable income to 9.3 per cent, which amounts to the highest level since 1995, said economist Daren King at National Bank of Canada.<\/p>\n<p>Borrowing costs could go higher still as many homeowners are set to renew their mortgages over the next two years, King said. \u201cThis means that the interest payment shock is not over and represents a headwind for the economy over the coming year,\u201d he said.<\/p>\n<p>His view is backed by Royal Bank of Canada economists, who also predict continued rising costs \u201cwith a wave of mortgage renewals still to come.\u201d\u00a0<span style=\"font-family: Verdana, Geneva, sans-serif\"><span\/><\/span><\/p>\n<p>Those higher costs will continue to pressure consumer spending, said Shelly Kaushik, an economist with Bank of Montreal, in a note to clients.<\/p>\n<h2>Household net worth declines<\/h2>\n<figure class=\"embedded-image\" data-aqa=\"embed-image\"><picture class=\"embedded-image__ratio\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/household-net-worth-1.png?quality=90&amp;strip=all&amp;w=564&amp;type=webp&amp;sig=srsg3wv4y1A-hNGJU5Hd4w,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/household-net-worth-1.png?quality=90&amp;strip=all&amp;w=1128&amp;type=webp&amp;sig=UoMelPOWVJkiO6P79jbSJA 2x\" media=\"(min-width: 1200px)\" srcset=\"data:,1w\" type=\"image\/webp\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/household-net-worth-1.png?quality=90&amp;strip=all&amp;w=564&amp;type=jpg&amp;sig=QqKDOf7gfzl5iLXCh8qkQQ,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/household-net-worth-1.png?quality=90&amp;strip=all&amp;w=1128&amp;type=jpg&amp;sig=noS7knEQANe3Dnk88CR_YQ 2x\" media=\"(min-width: 1200px)\" srcset=\"data:,1w\" type=\"image\/jpeg\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/household-net-worth-1.png?quality=90&amp;strip=all&amp;w=472&amp;type=webp&amp;sig=rAQoSmfPjq0Hh3PK8V06sA,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/household-net-worth-1.png?quality=90&amp;strip=all&amp;w=944&amp;type=webp&amp;sig=TqUvPqmsS0V5_6IAn6byJQ 2x\" media=\"(min-width: 768px)\" srcset=\"data:,1w\" type=\"image\/webp\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/household-net-worth-1.png?quality=90&amp;strip=all&amp;w=472&amp;type=jpg&amp;sig=4H6XU_JYOZ0fmK1hMnookw,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/household-net-worth-1.png?quality=90&amp;strip=all&amp;w=944&amp;type=jpg&amp;sig=pmexoe_BCq45nna2qhMcgg 2x\" media=\"(min-width: 768px)\" srcset=\"data:,1w\" type=\"image\/jpeg\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/household-net-worth-1.png?quality=90&amp;strip=all&amp;w=288&amp;type=webp&amp;sig=3UY3M0Nof7ZqXMg9GqOmAg,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/household-net-worth-1.png?quality=90&amp;strip=all&amp;w=576&amp;type=webp&amp;sig=WjuQXk4KHoqxW3XmVnGWdg 2x\" media=\"(max-width: 767px)\" srcset=\"data:,1w\" type=\"image\/webp\"><img decoding=\"async\" alt=\"Houshold net worth chart\" class=\"embedded-image__image lazyload\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/household-net-worth-1.png?quality=90&amp;strip=all&amp;w=288&amp;sig=4hTDlM7FWIhwFl4X2F8YTA\" data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/household-net-worth-1.png?quality=90&amp;strip=all&amp;w=288&amp;sig=4hTDlM7FWIhwFl4X2F8YTA,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/household-net-worth-1.png?quality=90&amp;strip=all&amp;w=576&amp;sig=mUg0791QYsNN7FlOtEMRqA 2x\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/household-net-worth-1.png?quality=5&amp;strip=all&amp;w=100&amp;sig=Pjr2_qgmZWN03qHR4x8hhQ\" height=\"824\" loading=\"lazy\" width=\"1000\"\/><\/source><\/source><\/source><\/source><\/source><\/picture><\/figure>\n<p>Household net worth fell by $301.2 billion to $16.2 trillion, down from $16.3 trillion in the second quarter, Statistics Canada said.<\/p>\n<\/section>\n<div class=\"js-widget-content article-content__widget-group article-content__widget-group--content-slot25 article-content__widget-group--newsletter-slot\">\n<section class=\"newsletter-widget__new-story-page fp-headlinenews background--primary-light-gradient\" aria-labelledby=\"FinancialPostTopStories5024873341250562757124791386243072\" data-account-id=\"b9d3df2fccd108b5eff3c44f573b2cd6\" data-aqa=\"widget-newsletter\" data-newsletter=\"single\" data-newsletter-component=\"\" data-target-list=\"FP_HeadlineNews\" data-widget=\"newsletter\">\n<div class=\"newsletter-new-story-page-template\">\n<div class=\"newsletter-widget__header__new-story-page\">\n<div class=\"newsletter-widget__banner__new-story-page\"><img decoding=\"async\" alt=\"Top Stories\" loading=\"lazy\" src=\"https:\/\/dcs-static.gprod.postmedia.digital\/15.0.2\/websites\/images\/newsletters\/icon-fp-topStories.svg\"\/><\/div>\n<div>\n<p>Top Stories<\/p>\n<p class=\"newsletter-widget__text__new-story-page\">Get the latest headlines, breaking news and columns.<\/p>\n<\/div>\n<\/div>\n<div class=\"newsletter-widget__body__new-story-page\">\n<div class=\"js-replace-main__new-story-page\">\n<p class=\"newsletter-widget__disclaimer__new-story-page text-size--tiny\">By signing up you consent to receive the above newsletter from Postmedia Network Inc.<\/p>\n<\/div>\n<div class=\"js-submit-success\" hidden=\"\" id=\"submitSuccessFP_HeadlineNews\">\n<p>Thanks for signing up!<\/p>\n<p class=\"newsletter-widget__text__new-story-page\">A welcome email is on its way. If you don&#8217;t see it, please check your junk folder.<\/p>\n<p class=\"newsletter-widget__text__new-story-page newsletter__feedback--last\">The next issue of Top Stories will soon be in your inbox.<\/p>\n<\/div>\n<p class=\"newsletter-widget__text__new-story-page js-submit-error\" style=\"margin-top: 8px\" hidden=\"\" id=\"submitErrorFP_HeadlineNews\">We encountered an issue signing you up. Please try again<\/p>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_3\">\n<section aria-describedby=\"advertisment3777747320654164558584400740089856\" class=\"ad\">\n<p>Advertisement 3<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-3\">\n<div class=\"ad__inner__container\" data-ad=\"[[7,7],[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-interscroller=\"7x7\" data-ad-loc=\"3\" data-ad-mobile=\"[[7,7],[300,250],[320,50],[300,50]]\" data-aqa=\"advertisement\" id=\"ad-3\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>\u201cThe financial weather turned stormy in the third quarter as both financial and non-financial asset values declined, dragging down total household wealth,\u201d said Maria Solovieva, an economist with Toronto-Dominion Bank.<\/p>\n<h2>Real estate equity drops<\/h2>\n<figure class=\"embedded-image\" data-aqa=\"embed-image\"><picture class=\"embedded-image__ratio\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/home-equity-real-estate.png?quality=90&amp;strip=all&amp;w=564&amp;type=webp&amp;sig=M8RMS2_TXCAKxNxelHtKLQ,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/home-equity-real-estate.png?quality=90&amp;strip=all&amp;w=1128&amp;type=webp&amp;sig=mj-RjWa3o7MwNK83Q2Xecg 2x\" media=\"(min-width: 1200px)\" srcset=\"data:,1w\" type=\"image\/webp\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/home-equity-real-estate.png?quality=90&amp;strip=all&amp;w=564&amp;type=jpg&amp;sig=7B5FDrWtzCR3dTWgl-Wvcg,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/home-equity-real-estate.png?quality=90&amp;strip=all&amp;w=1128&amp;type=jpg&amp;sig=h4Mc_hgE84YS5Xhj9x-XTQ 2x\" media=\"(min-width: 1200px)\" srcset=\"data:,1w\" type=\"image\/jpeg\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/home-equity-real-estate.png?quality=90&amp;strip=all&amp;w=472&amp;type=webp&amp;sig=hBZD_O6cw2esR6tY-3_m5Q,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/home-equity-real-estate.png?quality=90&amp;strip=all&amp;w=944&amp;type=webp&amp;sig=8lgLJdMbZziwd1Bk5TQxGg 2x\" media=\"(min-width: 768px)\" srcset=\"data:,1w\" type=\"image\/webp\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/home-equity-real-estate.png?quality=90&amp;strip=all&amp;w=472&amp;type=jpg&amp;sig=Cqsn3EhsFoXjdZfmP4knqw,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/home-equity-real-estate.png?quality=90&amp;strip=all&amp;w=944&amp;type=jpg&amp;sig=QKbqpCpS5EcaqVSmzyTzcA 2x\" media=\"(min-width: 768px)\" srcset=\"data:,1w\" type=\"image\/jpeg\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/home-equity-real-estate.png?quality=90&amp;strip=all&amp;w=288&amp;type=webp&amp;sig=vQy-oSjsv3vir75pSzdRQA,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/home-equity-real-estate.png?quality=90&amp;strip=all&amp;w=576&amp;type=webp&amp;sig=aLBeRLPSokPcufT2CWLlqw 2x\" media=\"(max-width: 767px)\" srcset=\"data:,1w\" type=\"image\/webp\"><img decoding=\"async\" alt=\"Home equity real estate chart\" class=\"embedded-image__image lazyload\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/home-equity-real-estate.png?quality=90&amp;strip=all&amp;w=288&amp;sig=jJvZd9q1yR7eOo0HgFIQ6w\" data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/home-equity-real-estate.png?quality=90&amp;strip=all&amp;w=288&amp;sig=jJvZd9q1yR7eOo0HgFIQ6w,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/home-equity-real-estate.png?quality=90&amp;strip=all&amp;w=576&amp;sig=pibPwfKL12aXww48w1utgw 2x\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/home-equity-real-estate.png?quality=5&amp;strip=all&amp;w=100&amp;sig=A6gSq002U2IPx9PP2C0EAQ\" height=\"816\" loading=\"lazy\" width=\"1000\"\/><\/source><\/source><\/source><\/source><\/source><\/picture><\/figure>\n<p>Canadians\u2019 equity in real estate fell by 1.7 per cent in the third quarter as home prices dropped, said Statistics Canada.<\/p>\n<p>Home equity is now more than 10 per cent below what it was when home prices peaked in the second quarter of 2022, said RBC economist Carrie Freestone. Still, it is 57 per cent higher than in the fourth quarter of 2019, just before the start of the pandemic.<\/p>\n<p>Equity could fall further with Canadian home prices <span>on track to decline more than three per cent in the fourth quarter, said<\/span> TD\u2019s Solovieva.<\/p>\n<h2>Mortgage interest increases slow<\/h2>\n<figure class=\"embedded-image\" data-aqa=\"embed-image\"><picture class=\"embedded-image__ratio\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/mortgage-interest-principal-payments.png?quality=90&amp;strip=all&amp;w=564&amp;type=webp&amp;sig=0b3mTB_FK3WLslUFGH9T6w,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/mortgage-interest-principal-payments.png?quality=90&amp;strip=all&amp;w=1128&amp;type=webp&amp;sig=o4xQoQTJJeYBNJ4-xO6S5w 2x\" media=\"(min-width: 1200px)\" srcset=\"data:,1w\" type=\"image\/webp\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/mortgage-interest-principal-payments.png?quality=90&amp;strip=all&amp;w=564&amp;type=jpg&amp;sig=moU0OHegoh7k1GY11cEVug,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/mortgage-interest-principal-payments.png?quality=90&amp;strip=all&amp;w=1128&amp;type=jpg&amp;sig=YH02bzRwrBCjzjt0QK2d4g 2x\" media=\"(min-width: 1200px)\" srcset=\"data:,1w\" type=\"image\/jpeg\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/mortgage-interest-principal-payments.png?quality=90&amp;strip=all&amp;w=472&amp;type=webp&amp;sig=ZwrNGM50P6HZXjqLP8SVRQ,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/mortgage-interest-principal-payments.png?quality=90&amp;strip=all&amp;w=944&amp;type=webp&amp;sig=v0vcgkCbFncFsM-ZIeLy0g 2x\" media=\"(min-width: 768px)\" srcset=\"data:,1w\" type=\"image\/webp\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/mortgage-interest-principal-payments.png?quality=90&amp;strip=all&amp;w=472&amp;type=jpg&amp;sig=CIf5vTnhZI9p-EN8P5UjuA,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/mortgage-interest-principal-payments.png?quality=90&amp;strip=all&amp;w=944&amp;type=jpg&amp;sig=t0m_sewTpj7fFJQITfPN9A 2x\" media=\"(min-width: 768px)\" srcset=\"data:,1w\" type=\"image\/jpeg\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/mortgage-interest-principal-payments.png?quality=90&amp;strip=all&amp;w=288&amp;type=webp&amp;sig=2ixUN5CQc_YzwUXceS0rUQ,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/mortgage-interest-principal-payments.png?quality=90&amp;strip=all&amp;w=576&amp;type=webp&amp;sig=YpeP7Nd5-mR3cBEWez_IzA 2x\" media=\"(max-width: 767px)\" srcset=\"data:,1w\" type=\"image\/webp\"><img decoding=\"async\" alt=\"Mortgage and interest payments\" class=\"embedded-image__image lazyload\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/mortgage-interest-principal-payments.png?quality=90&amp;strip=all&amp;w=288&amp;sig=-g1YANZs0Hnt2IEnVNITlw\" data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/mortgage-interest-principal-payments.png?quality=90&amp;strip=all&amp;w=288&amp;sig=-g1YANZs0Hnt2IEnVNITlw,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/mortgage-interest-principal-payments.png?quality=90&amp;strip=all&amp;w=576&amp;sig=0-yg7veSQXyp6OaNPEDDjA 2x\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/mortgage-interest-principal-payments.png?quality=5&amp;strip=all&amp;w=100&amp;sig=ibMiqDUlCVs8i14WuQWx5w\" height=\"852\" loading=\"lazy\" width=\"1000\"\/><\/source><\/source><\/source><\/source><\/source><\/picture><\/figure>\n<p>Since the Bank of Canada started hiking interest rates Canadians are paying more interest on their mortgages with less going toward the principal. But the increase in interest payments slowed to 3.6 per cent in the third quarter compared with 5.9 per cent in the second quarter, while principal payments increased by 0.2 per cent after falling for five consecutive quarters, Statistics Canada said.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_4\">\n<section aria-describedby=\"advertisment5291564882976444347573957979799552\" class=\"ad\">\n<p>Advertisement 4<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-4\">\n<div class=\"ad__inner__container\" data-ad=\"[[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-loc=\"4\" data-ad-mobile=\"[[320,50],[300,50],[300,250]]\" data-aqa=\"advertisement\" id=\"ad-4\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p><span>The shift comes from homeowners negotiating longer amortization periods to \u201c<\/span><span>keep their payments (interest and principal combined) from increasing too drastically,\u201d Charles St-Arnaud, chief economist at Alberta Central, said. \u201cHowever, this comes at the expense that households will remain indebted for longer.\u201d<\/span><\/p>\n<h2>Debt levels fall<\/h2>\n<figure class=\"embedded-image\" data-aqa=\"embed-image\"><picture class=\"embedded-image__ratio\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/canadian-debt-levels.png?quality=90&amp;strip=all&amp;w=564&amp;type=webp&amp;sig=YH6z4mXu3lEn0AUKChSrRA,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/canadian-debt-levels.png?quality=90&amp;strip=all&amp;w=1128&amp;type=webp&amp;sig=XsUHjVNioEl-WxN2NJW5Rw 2x\" media=\"(min-width: 1200px)\" srcset=\"data:,1w\" type=\"image\/webp\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/canadian-debt-levels.png?quality=90&amp;strip=all&amp;w=564&amp;type=jpg&amp;sig=ssu3QYR-GAHVpAWeHPU4Cg,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/canadian-debt-levels.png?quality=90&amp;strip=all&amp;w=1128&amp;type=jpg&amp;sig=Jc_mlI22KZjg3BC3xLLCSw 2x\" media=\"(min-width: 1200px)\" srcset=\"data:,1w\" type=\"image\/jpeg\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/canadian-debt-levels.png?quality=90&amp;strip=all&amp;w=472&amp;type=webp&amp;sig=HvavnnGetvsNbMZEFa8ssg,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/canadian-debt-levels.png?quality=90&amp;strip=all&amp;w=944&amp;type=webp&amp;sig=NLIkTB-v5Y0-K8t9u5fgsA 2x\" media=\"(min-width: 768px)\" srcset=\"data:,1w\" type=\"image\/webp\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/canadian-debt-levels.png?quality=90&amp;strip=all&amp;w=472&amp;type=jpg&amp;sig=px5DhXDS4lcCmHG37wfmBw,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/canadian-debt-levels.png?quality=90&amp;strip=all&amp;w=944&amp;type=jpg&amp;sig=lramKLweurfvsgl3UD8qAg 2x\" media=\"(min-width: 768px)\" srcset=\"data:,1w\" type=\"image\/jpeg\"><source data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/canadian-debt-levels.png?quality=90&amp;strip=all&amp;w=288&amp;type=webp&amp;sig=se6478ReHAkqtNRGpxEy6g,&#10;            https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/canadian-debt-levels.png?quality=90&amp;strip=all&amp;w=576&amp;type=webp&amp;sig=0FDWYHwJsYwY9KVVTD1LZA 2x\" media=\"(max-width: 767px)\" srcset=\"data:,1w\" type=\"image\/webp\"><img decoding=\"async\" alt=\"Canadian debt levels chart\" class=\"embedded-image__image lazyload\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/canadian-debt-levels.png?quality=90&amp;strip=all&amp;w=288&amp;sig=JqGyYVVat-gKUwjwtjqyZQ\" data-srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/canadian-debt-levels.png?quality=90&amp;strip=all&amp;w=288&amp;sig=JqGyYVVat-gKUwjwtjqyZQ,&#10;                https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/canadian-debt-levels.png?quality=90&amp;strip=all&amp;w=576&amp;sig=-FkTu3N5o8Dsr9Dvy64SCA 2x\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/canadian-debt-levels.png?quality=5&amp;strip=all&amp;w=100&amp;sig=qNRxrF7LJFO2unxmxDT4Vw\" height=\"746\" loading=\"lazy\" width=\"1000\"\/><\/source><\/source><\/source><\/source><\/source><\/picture><\/figure>\n<p>Income outpaced growth in debt, leading to a decline in the debt-to-income ratio, which now sits at 181.6 per cent compared to an upwardly revised 181.9 per cent in the prior quarter. That means for every dollar of household disposable income in the third quarter, there was $1.82 in debt, said Statistics Canada.<\/p>\n<p>Higher borrowing costs are expected to continue to be a \u201cdamper on loan demand, which should lead to continued modest improvement in the debt-to-income ratio,\u201d Kaushik at BMO said.<\/p>\n<p>If income had not grown by one per cent in the quarter, St-Arnaud estimates the debt-to-income ratio would have risen to <span>220.9 per cent.<\/span><\/p>\n<section aria-labelledby=\"moreTopicLabel5695655785398472815094895791308800\" class=\"more-topic\" data-aqa=\"embed-more-topic\" data-carousel-component=\"\" data-carousel-icon-button=\"\" data-carousel-type=\"list\">\n<p>Related Stories<\/p>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-prev\" data-carousel-prev=\"\" tabindex=\"-1\" title=\"previous\" type=\"button\"\/><\/p>\n<ol class=\"more-topic__items list-unstyled\" data-carousel-slide-list=\"\" tabindex=\"0\">\n<li class=\"more-topic__item\" data-carousel-item=\"\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" alt=\"Once the credit-card bills arrive or the payments kick in, spending often turns to regret or resentment.\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/shopping-vw1206.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=VVU9WitWCK5Ut-JvpKhtBg\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/shopping-vw1206.jpg?h=96&amp;strip=all&amp;quality=5&amp;sig=g1nAG-Vpc19Rr7xvUZ_svQ\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/shopping-vw1206.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=VVU9WitWCK5Ut-JvpKhtBg, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/shopping-vw1206.jpg?h=192&amp;strip=all&amp;quality=80&amp;sig=b4ddMze4Tv9Tny6n5oUI_A 2x,&#10;                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/shopping-vw1206.jpg?h=288&amp;strip=all&amp;quality=80&amp;sig=ciVpqM2hMCkpwJfZGnJTHw 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">How to find some joy without spending more money<\/span><\/p>\n<\/li>\n<li class=\"more-topic__item\" data-carousel-item=\"\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" alt=\"Even if you have a lot of bad debt, it's important not to consider yourself as \u201cbad\u201d or \u201cbad with money.\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/11\/debt-worries-vw1109.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=DivwlTEAKl-uJ16kCPM3WQ\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/11\/debt-worries-vw1109.jpg?h=96&amp;strip=all&amp;quality=5&amp;sig=ovWlO2T8eGDRVCxSq9pOfg\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/11\/debt-worries-vw1109.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=DivwlTEAKl-uJ16kCPM3WQ, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/11\/debt-worries-vw1109.jpg?h=192&amp;strip=all&amp;quality=80&amp;sig=1IicJvX3XGe6nLFYcv3Zwg 2x,&#10;                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/11\/debt-worries-vw1109.jpg?h=288&amp;strip=all&amp;quality=80&amp;sig=NERLZcR80iNfqOmN5ENWBw 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">Obsessing about your debts won&#8217;t get rid of them, but here&#8217;s what will<\/span><\/p>\n<\/li>\n<li class=\"more-topic__item\" data-carousel-item=\"\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" alt=\"For most Canadians, living without credit isn\u2019t realistic.\" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/10\/no1002debt.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=Z__h9R87q8sq5IyYoihWXQ\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/10\/no1002debt.jpg?h=96&amp;strip=all&amp;quality=5&amp;sig=U3P2cNmt0NZe0cZvLFUqTQ\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/10\/no1002debt.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=Z__h9R87q8sq5IyYoihWXQ, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/10\/no1002debt.jpg?h=192&amp;strip=all&amp;quality=80&amp;sig=Hkn1mdvGcVA__k6rhkXTEg 2x,&#10;                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/10\/no1002debt.jpg?h=288&amp;strip=all&amp;quality=80&amp;sig=6lm4pem6xEK73d3-941QsA 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">Debt settlement isn&#8217;t for everyone, but here&#8217;s how some can get out of hock<\/span><\/p>\n<\/li>\n<\/ol>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-next\" data-carousel-next=\"\" tabindex=\"-1\" title=\"next\" type=\"button\"\/><\/section>\n<p data-async=\"\"><em>\u2022 Email: gmvsuhanic@postmedia.com <\/em><\/p>\n<p data-async=\"\"><em><strong>Bookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<section class=\"article-content__share-group article-delimiter\" data-evt-val=\"{\" control_fields=\"\" data-evt-typ=\"page_scroll\">\n<p>Share this article in your social network<\/p>\n<\/section>\n<\/div>\n\n<br \/>Here&#8217;s how Canadians are coping with higher interest in 5 charts<\/a><br \/>\n<br \/>2023-12-14 14:00:30<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Breadcrumb Trail Links Personal Finance News Economy Debt Costs of paying down debt climbed to record while net worth declined Published Dec 14, 2023 \u00a0\u2022\u00a0 Last updated 1\u00a0hour ago \u00a0\u2022\u00a0&#8230;<\/p>\n","protected":false},"author":2,"featured_media":41779,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-41778","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/41778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=41778"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/41778\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/41779"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=41778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=41778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=41778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}