British Columbians Embrace Low Interest Rates

With the Bank of Canada holding interest rates at record lows of just 0.5 per cent, many British Columbians are on a credit spending binge, using home equity as a means for taking on more debt. In fact, a new poll conducted by Ipsos on behalf of MNP Ltd. shows that nearly 30 per cent of respondents admit they have taken on more debt over the last twelve months. But how would B.C. households be impacted if interest rates started to rise?

“Many are beginning to realize they have taken on more debt than they can manage, even with low interest rates,” says Kelowna-based Darrin Surminsky, a Licensed Insolvency Trustee with MNP Ltd. “This kind of care-free attitude toward borrowing and spending is irrational. The reality is that any sort of financial hiccup – like a job loss, divorce or decrease in home prices – may make it impossible for many to meet their debt repayment obligations.”

An original article discussing the Ispos survey conducted on behalf of MNP regarding Canadian consumer debt were posted online with Castanet News on April 11, 2017.