Homeowners not filing insolvency
The Bank of Canada has raised its central bank rate six times so far this year reaching 3.75% in October 2022, up from a low of 0.25% at the beginning of the year. The resulting highercost of borrowing has led to a significant decline in mortgage originations and housing pricesand plenty of discussion about a recession in Canada.
Yet despite rising interest rates, particularly mortgage rates, homeowners are still not filing insolvency (either a bankruptcy or consumer proposal). In fact, our Hoyes MichalosHomeowners Bankruptcy Index (HBI) was 3.3% in October 2022.