Interest Rate Hike, Even A Small One, Could Be Trouble For 1 Million Canadians + MORE Sep 14th

TORONTO — Up to one million Canadian borrowers could face problems paying their debts if interest rates rise by a full percentage point including some of the highest rated consumers, a report released Tuesday by TransUnion suggests.

The credit reporting agency said that while the majority of Canadians will not be materially impacted in the near term by an interest rate increase, there is a “material subset” that may be challenged.

Jason Wang, TransUnion’s director of research and industry analysis in Canada, said even those with what are considered “super-prime” credit scores could struggle because credit scores measure past behaviour.

“If there’s a rate increase, are you still able to do that in the future? That is the question,” Wang said.

“This is the kind of review that a lot of lenders need to be doing because they probably have a good strategy on sub-prime consumers already. It’s the super-prime that sometimes can catch them off guard.”

Chart: TransUnion

TransUnion estimates approximately seven million Canadian consumers have a variable-rate mortgage or a line of credit with a variable interest rate…

TORONTO—Ontario home owners, farmers and small businesses will get some relief from soaring electricity prices starting in January when the provincial portion of the harmonized sales tax is removed from hydro bills.
The Liberal government announced the plan in the throne speech opening the fall session of the legislature, saying Ontario’s eight-per-cent slice of the HST would be taken off electricity bills, and promising additional relief for rural ratepayers.
The government says the HST reduction will save the typical Ontario household about $130 a year, and projects additional savings of about $540 a year for some rural electricity customers.
It was just nine months ago that Ontario scrapped the Clean Energy Benefit, which provided a 10-per-cent reduction on all parts of electricity bills, including the HST.
Other initiatives in the throne speech include a commitment to create an additional 100,000 licensed child care spaces for children aged four and under over five years, starting in 2017…