Ballooning debt takes the highest toll on home equity borrowers: Dale Jackson

This week’s news that Canadian households have fallen deeper in debt than any other G7 country is setting off alarm bells.

According the Canada Mortgage and Housing Corporation (CMHC), the amount we owe has surpassed Canada’s entire growth domestic product (GDP).        

But that’s not the half of it. Three quarters of Canadian household debt is tied to mortgages; either directly or through home equity loans. 

CMHC, the country’s largest mortgage insurer, says ballooning debt levels have made the Canadian economy vulnerable following a series of interest rate increases in just over a year, which have in some cases doubled regular mortgage payments for homeowners.