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Robert Mclister: The cost of living in this country is oppressive and cost 52% more than the average country
Published on February 28, 2025 • Last updated 15 hours ago • Read 4 minutes
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The cost of living in Canada is 52 percent more than the global average. Photo by Getty Images/iStockphoto
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While I scanned my e -mails and social media this week, it was difficult not to be touched by Comments by Canadians who deal with mortgage payments. So many families are currently in survival mode and reduce everything that is not just oxygen.
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Of course this is not new, but it gets worse for many. The cost of living in this country is oppressive and, according to Globaleconomy.com, cost 52 percent more than the average country. This is lower than the USA, but, adapted to currency, our income is also much lower.
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On its immigration website, our government calls on immigrants to expect up to half of their income for living space and supply companies. Now there is an inviting gift. What remains after taxes, daycare centers, transport and other “luxury?” Enough to buy a motivation poster on which it is: “At least you are not coordinated in your mortgage!”
While the overall statistics are injured a lot, most mortgages do not yet immerse themselves in crisis mode. If you are a full-time double income household with a five-year mortgage and get the average weekly wages of $ 1,517.35 per person under control. The official state figures say that their income has increased by 24 percent since they removed this mortgage in 2020.
If these borrowers settle this, these borrower will seek a thrust of around $ 1,267 per month. Even after inflation and taxes, this is still sufficient to cover the 150 US dollars per month that projects and BMO, as a typical payment of 2025, projects for their mortgage narrowing. However, if you only live with a medium -sized income, life is less rosy.
In fact, the average mortgage is okay. For example, the retreat rates are still 41 percent below the long-term average of the Canadians are Master at the financial channel.
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But unfortunately for those who are financially under water, this is as calming as a empty rubber boat.
What you can do
Mortgear providers carefully rate their debt rates – the ratio of monthly obligations to gross income – before they give them money. Most people who live on the finance edge have debt rates that are too high to be approved for a prime mortgage on average interest rates.
If you are in this boat, you will find some possible rescue rafts here until you can maintain your financial ship:
- If available, use SKIP A Payment options to avoid missing mortgage payments.
- If you have problems qualifying for regular financing, talk to a mortgage broker about debt consolidation or a second mortgage.
- Take more work if possible, because nothing says “flourishing economy” than working three jobs.
- Restrict costs – this is not a solution for most, but some sell their cars (disposal of payments, gas, insurance and maintenance) and use public transport to get to work.
- Sales here are not an option for most, but if you live in an inexpensive region, it can be an option to go further to the outside or rent while maintaining accessibility at work.
- If you are near your mortgage nearby, but have a registered retirement provision, contact an experienced financial advisor for options before performing your savings.
- Talk to your lender – be proactive. Tell the lender that you do not want to miss a payment and request a temporary payment leave until you can catch up. If it is a mainstream loan, you may be able to expand your amortization to lighten your load.
- If you are really in depth, talk to a reputable credit consultant about how you can restructure debt and at the same time maintain your mortgage.
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Look ahead
The prices were on a downward slide, and the tariffs of US President Donald Trump were able to cut them even further in a short to medium term. Unfortunately, the economy can be a waxa. The same forces that depress the rates could also increase unemployment and inflation. This increases the need that financially vulnerable borrowers are conservative when choosing a mortgage period.
In the written letter, the forward rate data from the DNA of the canon DNA show that the market is projecting two further interest reductions from Bank of Canada. If we receive these cuts, this shaved further payments of $ 40 to $ 65 per month for payments for adjustable loans or mortgage extensions, depending on the credit type and taking over a credit of USD 300,000.
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At the moment our largest economic bugaboo is inflation. There is income a thrust, but the purchasing power also shrinks like a sweater in a hot laundry and pushes the mortgage interest up.
In the middle of Trump's tariff turbulence, the mortgages should keep an eye on bond yields and core inflation and cross their fingers that remain flat or lower. If these indicators rise significantly, consider to block faster than a politician than the carbon tax.
Robert Mclister is a mortgage strategist, interest analyst and editor of Mortgagelogic.news. You can follow him on X at @robmclister.
Mortgage interest
The prices shown below will be updated until the end of each day and come from the Canadian mortgage survey by Mortgagelogic.news. Postmedia and imaginative. Online Inc., parents of Mortgagelogic.news, are compensated by certain mortgage providers if they click on their links in the charts.
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