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Renters facing financial challenges in Canada

Shocking Report Reveals: 1 in 3 Canadians Drowning in Financial Crisis - What Happened in 2023?

November 08, 2023•4 min read

Are you feeling the pinch of Canada's growing financial crisis in your daily life?

Canadian family budgeting for monthly expenses.

Hate to see it.

Honest hard working Canadians are feeling a supreme squeeze between rising interest rates and inflation like never before.

Ironically, those who could not afford a mortgage in the past are experiencing the most difficulty from actions taken in the real estate market.

It's easy to imagine how 'unfair' that might seem growing up as a Canadian in a place where equality is touted more so than anything else.

Immigrant families dealing with financial hardship in Canada.

But when it comes to markets, our economic circumstances, and outcomes, things are rarely, if ever - fair.

That is the nature of this capitalist beast we know as our global economy.

But even now...

Those who have taken on a mortgage in the last 3-4 years are feeling a burn like never before.

I am seeing situations where investors and homeowners are walking away from hundreds of thousands of dollars in a down payment or deposit, just to escape negative amortization or unfeasible rate hikes to their monthly payments.

Power of sale becoming increasingly common amongst new listings.

Bank of Canada holding rates higher for longer.

Riding a wave upward in a market is always great.

Building value - building wealth...

To the moon!

But it is very apparent that Canada has blown the top off of its real estate market, and the fallout is devastating families across the country.

Renters can't afford rent, homeowners can't afford mortgages, inflation cuts away at any spare change that Canadians have left over.

We are either in our worst case scenario or approaching - quickly.

Who can we rely on... really?

I personally believe that relying on ourselves is really the only answer.

We are in the situations we are in because of the decisions 'we' make.

Have you made decisions that compromised your situation?

Making mistakes is ok, but....

What decisions will you make to secure your financial future, now?

Do you have people who depend on you?

Canada is just one market after all.

Canadian dollar and markets weaken compared to other developed nations.

There are millions of markets, across a vast and infinite space that is our world wide web.

And money does not know borders.

It only knows value creation.

If you are thinking about an idea to take online, and want to know how to make it a reality...

Don't hesitate and reach out.

If you are confident you can provide value to some market somewhere, your financial woes may be something you can plan to manage.

Or even something you can overcome.

Until next time.

Alex, Peak Demand

[email protected]

TEXT +1 (647) 691-0082 to chat with our AI assistant 'PeakBot'.

Email to [email protected] chat with our AI assistant 'PeakBot'.

A summary of the article is included below.

Original Article: 1 in 3 Canadians are living in households with financial difficulties: StatCan

Link to Global News Article: https://globalnews.ca/news/10071127/canadian-households-financial-difficulties/

Summary: The article from Global News highlights that one in three Canadians are experiencing financial hardship, particularly in paying for necessary expenses like housing, food, and clothing. Renters are more affected than homeowners, with financial pressure being significantly higher in certain regions of Southern Ontario. Despite a decrease in the Consumer Price Index growth, the cost of essential goods and services continues to exert financial pressure on many households. The report also notes that recent immigrants, lone-parent families, and certain racialized groups face more financial challenges. Additionally, the article mentions the rising use of food banks and the ongoing housing crisis in Canada.

Takeaways:

Hardship: One in three Canadians are living in households experiencing financial hardship, struggling with expenses like transportation, housing, food, and clothing.

Renters: Renters are more likely to face financial challenges compared to those owning homes, especially those without mortgages.
Regional Disparity: Southern Ontario has the highest proportion of financially strained households, with St. Catharines-Niagara topping the list.
Consumer Price Index: Despite a decrease in the Consumer Price Index growth rate, the financial burden remains significant for many Canadians.
Immigrants and Lone-Parents: A notable portion of recent immigrants and lone-parent families face financial difficulties.
Racialized Groups: South Asian and Black Canadians are more likely to live in financially strained households compared to Chinese Canadians.
Housing Crisis: A majority of Canadians view home ownership as a privilege of the wealthy, and many acknowledge a housing crisis in their communities.
Food Banks: The use of food banks has surged due to the high cost of living.
Bank of Canada: The central bank has raised interest rates significantly, with the possibility of future hikes to control inflation.

financial hardshipsrenters strugglefood bankshousing crisisaffordabilityinterest rates

Alex Masters Lecky

Alex is the founder of Peak Demand and a visionary in the field of AI-powered solutions. With a deep expertise in developing advanced voice agents and AI-driven call center services, Alex is passionate about transforming how businesses interact with their customers. His focus is on leveraging AI to create seamless, efficient, and highly personalized customer service experiences that set businesses apart from the competition. While Alex’s roots are in content creation, media buying, and business development, his true passion lies in integrating AI into traditional digital marketing strategies. This unique blend of skills allows him to craft innovative solutions that not only drive engagement but also streamline business operations, making Peak Demand a leader in AI-powered business transformation. And yes, when he’s not revolutionizing the digital landscape, Alex is also an avid animal lover!

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