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Mortgage debt in Canada, highlighted in 5 charts

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With consecutive interest rate hikes across G7 nations, borrowing is getting more expensive for those looking to take on a mortgage.

But Canada may be facing more challenges than its G7 peers.

CTVNews.ca looks at recent data by the intergovernmental Organisation for Economic Co-operation and Development (OECD) to analyze where Canada stands in comparison with other G7 nations when it comes to housing affordability, housing prices, and indebtedness.

Central banks in G7 nations have been aggressive in addressing the rising cost of living through consecutive interest rate hikes.

High interest rates typically would mean high debt servicing costs, which eventually increase the cost of everything—from mortgages to credit cards and loans. The thought behind the hike is to discourage consumers from spending. To address the cost of living crisis, the Bank of Canada steadily raised interest rates, reaching 3.75 per cent last month, from just 0.25 per cent in January this year.

CANADA HAS A HIGH PRICE-TO-INCOME RATIO

When compared with other G7 nations, Canada has the most expensive housing market.

Data from OECD shows that the price-to-income ratio—also known as the measure of affordability—remained the highest for Canada, followed by Germany.

According to the quarterly data released by OECD, Canada’s ratio index reached 148.16 in the second quarter of 2022, the highest amongst G7 nations, which means that housing prices grew at a rate of 48 per cent faster than income since 2015. By comparison, house prices in the U.S. grew roughly 40 per cent faster than incomes since 2015.

In a virtual conference in March this year, Sharon Kozicki, the deputy governor with the Bank of Canada, said that Canadian households that have taken out mortgages with high loan-to-income ratios probably aren’t the ones who have a lot of cash in their bank accounts.

She said rising mortgages can trigger a slowdown in household spending and if enough of them reduce spending, it could impact the entire economy, resulting in slow growth and increased unemployment.

“A drop in house prices could worsen these effects,” she said.

HIGHEST NOMINAL HOUSING PRICE IN G7 NATIONS

Early in the pandemic, higher savings, and historically low interest rates encouraged some Canadians to buy homes. The buying pattern also shifted with people working remotely during the pandemic, which encouraged many Canadians to seek homes in the suburbs, where houses were larger and more affordable. A high disposable income further led to a surge in demand for home mortgages.

In the current high-interest rate environment, higher mortgage rates have contributed to a sharp decline in housing activity, leading to a decline in house prices. According to Wowa’s latest housing market report, average home prices in Canada have fallen by 22 per cent in the span of 7 months.

But the cooling housing market in Canada should not be mistaken for increasing affordability, warned Rebecca Oakes, Vice-President of Advanced Analytics at Equifax Canada in a recent press release.

She said affordability depended not just on home prices, but also on monthly payment obligations for a mortgage.“Higher interest rates coupled with high inflation can really stretch a consumer’s monthly expenditure, while many could find it difficult to qualify for a mortgage,” she said.

But despite cooling markets, recent data released by OECD shows that Canada has the highest nominal housing price. According to the annual data released by OECD, the ratio index for Canada grew 59 per cent since 2015, the highest jump recorded by any G7 nation, followed closely by Germany, which showed an annual jump of 58 per cent since 2015.

In the second quarter of 2022, Canada’s nominal house pricing index was 183.9, followed by the U.S. with a price index of 182

HIGHEST HOUSEHOLD DEBT ACROSS G7 NATIONS

Due to the soaring housing prices during the pandemic, Canadians took on more mortgage debt in order to pay for a home.

Data from OECD shows that Canadians remain the most indebted in G7 nations and tend to take on more household debt than their G7 peers.

In 2021—the most recent year for which data are available for all countries—household debt in Canada was 185 per cent of disposable income.

In 2020, household debt in Canada was equivalent to 177.3 per cent of disposable income. In comparison, the U.K. has the second-highest household debt at 148 per cent. In comparison to OECD countries, which ranks 38 countries, Canada ranks ninth after countries such as Denmark and Norway that top the list with 255 per cent and 241 per cent of disposable income with household debt, respectively.

Kozicki said high indebtedness amongst Canadians could amplify the impact of interest rates. An additional concern is that a growing share of new mortgages also has variable rates, which tend to fluctuate with the bank’s policy interest rates.

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Second fan files lawsuit claiming ownership of Shohei Ohtani’s 50-50 baseball

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MIAMI (AP) — The claim to Shohei Ohtani’s potentially lucrative 50th home run ball grew more complicated this week, with a second fan filing a lawsuit asserting he had possession of the historic baseball.

According to online records, the latest suit was filed by Joseph Davidov in Florida’s 11th Judicial Circuit Court, and the defendants are Chris Belanski, Kelvin Ramirez, Max Matus and Goldin Auctions. Belanski is the man who left the stadium with the baseball. Matus — who filed the first lawsuit last week — and Ramirez have also claimed ownership of the ball.

Ohtani became the first player in baseball history to hit 50 homers and steal 50 bases, reaching the mark on Sept. 19 with his homer in Miami against the Marlins. The bidding for the baseball through Goldin Auctions is currently at $1.464 million.

Because of a ruling related to Matus’ lawsuit, the ball can’t be formally sold until a hearing that is scheduled for Oct. 10.

Davidov claims in his suit that he was able to “firmly and completely grab the ball in his left hand while it was on the ground, successfully obtaining possession of the 50/50 ball.”

The suit goes on to say that “an unknown fan wrongfully jumped over the railing, jumped onto the Plaintiff and Plaintiff’s arm and attacked the Plaintiff causing the 50/50 Ball to come loose and roll into the hands of Defendant Chris Belanski.”

Davidov is seeking more than $50,000 in damages.

The first lawsuit claims that Matus, a Florida resident who was celebrating his 18th birthday, gained possession of the Ohtani ball before Belanski took it away. Part of the presentation by Matus’ attorney on Oct. 10 will be video of the scramble for the ball in the stands.

“Max successfully grabbed the 50/50 ball in his left hand and intended to keep it,” the lawsuit stated. “Unfortunately, a few seconds later, defendant Belanski — a muscular older man — trapped plaintiff’s arm in between his legs and wrangled the 50/50 ball out of Max’s left hand.”

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Calgary Stampeders in danger of missing CFL playoffs for first time since 2004

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The Calgary Stampeders’ streak of consecutive playoff appearances is in jeopardy.

Calgary has made 18 straight trips to the playoffs, which is the longest active streak in the CFL and fourth-longest in league history. But the Stampeders (4-9-1) visit B.C. (7-8) on Friday night sitting fifth in the West Division, five points behind the third-place Lions with a game in hand.

The last time Calgary missed the CFL playoffs was 2004 when it finished fifth in the West with a 4-14 record. The league didn’t play in 2020 due to the global pandemic.

The Stampeders are 2-5 within the West Division but 0-6 on the road. They’re the only CFL team that’s winless away from its home stadium.

The Stampeders come off the bye week and should be fresher. Then again, they were swept by Edmonton in their annual Labour Day series the last time they resumed play following the break.

Calgary’s Jake Maier has thrown 18 TD passes — third-most in the CFL — but also has 12 interceptions, just behind Hamilton’s Bo Levi Mitchell and Winnipeg’s Zach Collaros (co-leaders with 14 apiece).

Calgary is also 4-8-1 in games Maier has started and 1-6-1 in its last eight overall. The Stampeders are also last overall in offensive points (22.5 per game) and second-last in net yards (352 per game) and offensive TDs (29).

Calgary quarterbacks have also thrown a CFL-leading 17 interceptions and the club is last overall in turnover ratio (minus-16).

Defensively, Calgary is ranked second-last in offensive points allowed (28.1 per game) and net yards (386.4). The Stampeders are third against the pass (272.7 yards per game) but last in rushing yards allowed (125.9 per game).

Calgary is coming off a 37-29 loss to Saskatchewan on Sept. 20 as Ryquell Armstead ran for 207 yards in his Riders’ debut. B.C. running back William Stanback stands second among CFL rushers with 1,062 yards and is averaging 5.2 yards per carry.

But B.C. has dropped two straight and has just two wins over its last nine games. Starter Nathan Rourke is just 2-4 since returning to the CFL and has more interceptions (seven) than TD passes (four).

B.C. is coming off a 32-29 overtime home loss to Hamilton, which overcame a 16-0 halftime deficit. The Lions and Stampeders have split their season series 1-1, with the home team winning each time.

Maier has thrown for over 300 yards in both contests with five TDs. However, the Lions are 4-3 at B.C. Place Stadium this season.

Pick: B.C.

Winnipeg Blue Bombers versus Hamilton Tiger-Cats (Friday night)

At Hamilton, Winnipeg (9-6) has won seven straight, including a 55-27 home decision over Edmonton last week that saw Collaros pass for 432 yards and a career-best six TDs. CFL rushing leader Brady Oliveira (1,107 yards) ran for 86 yards but also had a 33-yard touchdown catch. The Ticats (5-9) are on a four-game win streak as Mitchell leads the league in passing yards (4,359) and touchdowns (26). A Steeltown loss would give idle Ottawa (8-6-1) its first post-season berth since the franchise’s ’18 Grey Cup loss to Calgary.

Pick: Winnipeg.

Saskatchewan Roughriders versus Edmonton Elks (Saturday night)

At Edmonton, Saskatchewan (7-7-1) chases a third consecutive victory. Its defence had three interceptions in last week’s 29-16 win over Ottawa while the offence held the ball for almost 38 minutes. However, the unit was forced to settle for seven Brett Lauther field goals. McLeod Bethel-Thompson threw three TD passes in last week’s loss to Winnipeg and is expected to start for the Elks (5-10), who’ve lost two straight. The season series is tied 1-1.

Pick: Saskatchewan.

Last week: 2-2.

CP’s overall record: 38-29.

This report by The Canadian Press was first published Oct. 2, 2024.

The Canadian Press. All rights reserved.

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Canadian figure skater Sorensen suspended at least 6 years for ‘sexual maltreatment’

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Canadian figure skater Nikolaj Sorensen has been suspended for at least six years for “sexual maltreatment,” the Office of the Sport Integrity Commissioner announced Wednesday.

The suspension was listed on the office’s Abuse-Free Sport registry and is subject to challenge or appeal.

Skate Canada, the nation’s governing body of figure skating and a signatory to Abuse-Free Sport, said in a statement it “has been made aware of the decision from Abuse-Free Sport in this matter and is taking the necessary action to comply with it.

“The ban will be issued by Skate Canada.”

The ban is a result of an OSIC investigation into an allegation that Sorensen sexually assaulted an American figure skating coach and former skater in Hartford, Conn., in 2012.

Sorensen has denied the allegation, which has not been tested in court.

Sorensen and skating partner Laurence Fournier Beaudry were active last season despite the allegation and investigation.

In January, the pair withdrew from the Canadian figure skating championships in Calgary. But in March they competed at the world championships in their home base of Montreal.

OSIC opened in June 2022 to handle complaints and investigations for national-level athletes in sporting organizations that sign on to the program. Former sports minister Pascale St-Onge established it to be an independent body for abuse complaints following Hockey Canada’s scandal that year.

Since August 2023, OSIC has announced eight suspensions, including Sorensen’s. The 35-year-old Sorensen is the sixth among those to include sexual maltreatment.

Tyler Myles is the only other from Skate Canada to have been suspended, with the coach currently ruled to have permanent ineligibility for “Boundary Transgressions, Interference with or Manipulation of Process, Physical Maltreatment, Sexual Maltreatment.”

However, the decision is “under challenge based on applicability of the UCCMS (Universal Code of Conduct to Prevent and Address Maltreatment in Sport).”

This report by The Canadian Press was first published Oct. 2, 2024.

The Canadian Press. All rights reserved.



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