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Canadians now owe more than $2 trillion, Equifax says – CBC.ca

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Consumer demand for credit intensified in the third quarter, driven chiefly by increases in mortgage balances and new auto loans, according to data released Monday by credit reporting agency Equifax.

Mortgage balances and new auto loans were up 6.6 per cent and 11.7 per cent year over year, respectively, according to Equifax. Overall average consumer debt increased 3.3 per cent compared with the third quarter of last year.

Rebecca Oakes, assistant vice-president of advanced analytics at Equifax Canada, said in an interview that growth in mortgages last quarter was especially high, with the largest increase among people under 35. That trend comes even as economic fallout from the pandemic and associated lockdown measures hit young people especially hard.

“In terms of new mortgages, that could be refinancing, or it could be brand-new, first-time home buyers or it could be people moving house,” Oakes said. “That was actually the highest value that we’ve seen ever.”

The increased demand for auto loans in the third quarter could have been a result of pent-up demand from people who had to wait to buy cars later in the year, Oakes said.

Total debt $2 trillion

The figures in Equifax’s report are drawn from banks and other lenders that provide data to the credit rating agency.

Equifax pegged total consumer debt at $2.04 trillion, while Statistics Canada reported in June that household debt had reached $2.3 trillion, with $1.77 in debt for every dollar of household disposable income.

More than three million consumers have chosen to use payment deferral programs since the start of the COVID-19 pandemic, according to Equifax. Since the start of this year, some banks have offered consumers the option to suspend their loan payments for several months, in recognition of the financial strain the pandemic has created for many households.

However, under the payment deferral programs, interest continues to accrue during the months for which payments are suspended.

The percentage of balances where credit users have missed three or more payments was at its lowest level since 2014, with deferral programs likely masking the true delinquency rates, according to Oakes.

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New cases of COVID-19 dropping in Canada as experts say lockdowns are working – CTV News

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TORONTO —
New cases of COVID-19 have steadily dropped over the last 12 days, a downward trend that experts say offers reason for hope even as the second wave pushes hospitals dangerously close to capacity.

Tracking by CTVNews.ca shows the country’s seven-day average has consistently fallen since Jan. 10, from 8,260 cases to 5,957 cases by Jan. 22.

Twelve days may seem brief, but infectious disease specialist Dr. Isaac Bogoch said the trajectory is a clear trend in the right direction.

“It looks like we have at least started to turn the corner, but we have a long road ahead,” Bogoch told CTVNews.ca on Friday.

The downward trend is particularly good news because respiratory viruses typically flourish during the winter, said infectious disease specialist Dr. Zain Chagla.

“Clearly it’s not just a few days’ numbers. There is a significant decrease, which is great,” Chagla said.

It may be tempting to point to vaccines as a potential reason for the drop, particularly as countries such as Israel have seen cases plummet amid their own aggressive vaccination plan. But both doctors rejected the idea that vaccines are responsible, since only two per cent of Canada’s population has received vaccines. In Israel, more than a quarter of the country has been vaccinated.

“(Canada’s vaccines) have been rolled out primarily to long-term care and health-care workers. That enough is not enough to drive down the case counts,” Chagla said.

Instead, both Chagla and Bogoch point to stricter public health measures in Quebec and Ontario, where lockdowns have shuttered non-essential businesses and social gatherings have been banned for weeks.

“So really it does come to the lockdowns,” Chagla said.

The downward trend comes at a time when some experts had predicted the country would still be experiencing the worst of a post-holiday surge in cases. While that’s not happening right now, Bogoch pointed out that Canada still experienced a sharp rise in cases following the holidays, with Canada’s seven-day average hitting its peak on Jan. 8 with 8,310 cases.

“It was pretty bad. I honestly think if we didn’t have those measures to blunt it, it would’ve been significantly worse,” he said.

Even as new cases fall, Canadian hospitals continue to struggle to keep up with hospitalizations, according to David Fisman, a professor of epidemiology at the University of Toronto.

“Unfortunately critical illness lags, so we still have ICU admissions at high levels that reflect the holiday surge,” he said.

Canada’s case count may hold promising news, including the possibility of providing more breathing room for hospitals, but Bogoch said it’s far too soon to pat ourselves on the back.

“I still think we’ve got to be careful here. While the trend is going down, we can’t let out guard down,” Bogoch said.

“We cannot plateau. We have to continue that downward trend.”​

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Canadians told to stay in their home province and cancel all travel plans – CTV Toronto

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TORONTO —
Canadians have been told to stay in the country due to the COVID-19 pandemic, but now the Prime Minister wants you to stay in your province too.

“No one should be taking a vacation right now. If you’ve got one planned, cancel it” Justin Trudeau said, adding that, “if you are thinking of traveling across the country for spring break – now is not the time.”

As the government urges Canadians to stay home to try and contain the spread of COVID-19, it is also urging anyone who has booked non-essential travel to cancel it.

Federal Health Minister Patty Hajdu said “50,000 cancellations (for international travel) demonstrates that people are understanding that this is a delicate situation that Canada finds itself in at the moment.”

While a travel ban is not in effect, there are now so many rules when it comes to traveling that taking a trip would be extremely difficult.

U.S. President Joe Biden has also brought in new travel rules. Now, to enter the United States you need a negative COVID test result and must quarantine 14 days.

When you return to Canada you also need a negative test result and must also quarantine for 14 days. Martin Firestone with Travel Secure believes if it becomes increasingly difficult to travel, people will just stay home.

“They are putting all these layers in place for only one reason and that is to deter you or de-incentivize you from traveling,” Firestone said.

As the vaccine rolls out against the virus, having the shot won’t change the rules when it comes to travelling.

“From an insurance perspective they don’t care if you have had the vaccine. From a government perspective they don’t care if you have had the vaccine. All the rules are the same whether you have had it or not,” Firestone said.

Legally, the government cannot force Canadians not to travel, however the Prime Minister said stronger restrictions could be implemented if necessary.

Trudeau said the federal government is also considering a mandatory quarantine in hotels for returning travelers.

The government has secured hotel rooms around Canada’s largest airports and has already spent millions of dollars on hotel rooms for people who said they had nowhere else to quarantine.

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New cases of COVID-19 dropping in Canada as experts say lockdowns are working – CTV News

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TORONTO —
New cases of COVID-19 have steadily dropped over the last 12 days, a downward trend that experts say offers reason for hope even as the second wave pushes hospitals dangerously close to capacity.

Tracking by CTVNews.ca shows the country’s seven-day average has consistently fallen since Jan. 10, from 8,260 cases to 5,957 cases by Jan. 22.

Twelve days may seem brief, but infectious disease specialist Dr. Isaac Bogoch said the trajectory is a clear trend in the right direction.

“It looks like we have at least started to turn the corner, but we have a long road ahead,” Bogoch told CTVNews.ca on Friday.

The downward trend is particularly good news because respiratory viruses typically flourish during the winter, said infectious disease specialist Dr. Zain Chagla.

“Clearly it’s not just a few days’ numbers. There is a significant decrease, which is great,” Chagla said.

It may be tempting to point to vaccines as a potential reason for the drop, particularly as countries such as Israel have seen cases plummet amid their own aggressive vaccination plan. But both doctors rejected the idea that vaccines are responsible, since only two per cent of Canada’s population has received vaccines. In Israel, more than a quarter of the country has been vaccinated.

“(Canada’s vaccines) have been rolled out primarily to long-term care and health-care workers. That enough is not enough to drive down the case counts,” Chagla said.

Instead, both Chagla and Bogoch point to stricter public health measures in Quebec and Ontario, where lockdowns have shuttered non-essential businesses and social gatherings have been banned for weeks.

“So really it does come to the lockdowns,” Chagla said.

The downward trend comes at a time when some experts had predicted the country would still be experiencing the worst of a post-holiday surge in cases. While that’s not happening right now, Bogoch pointed out that Canada still experienced a sharp rise in cases following the holidays, with Canada’s seven-day average hitting its peak on Jan. 8 with 8,310 cases.

“It was pretty bad. I honestly think if we didn’t have those measures to blunt it, it would’ve been significantly worse,” he said.

Even as new cases fall, Canadian hospitals continue to struggle to keep up with hospitalizations, according to David Fisman, a professor of epidemiology at the University of Toronto.

“Unfortunately critical illness lags, so we still have ICU admissions at high levels that reflect the holiday surge,” he said.

Canada’s case count may hold promising news, including the possibility of providing more breathing room for hospitals, but Bogoch said it’s far too soon to pat ourselves on the back.

“I still think we’ve got to be careful here. While the trend is going down, we can’t let out guard down,” Bogoch said.

“We cannot plateau. We have to continue that downward trend.”​

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