Posthaste: Borrowers feeling the strain as Bank of Canada stresses higher rates may be here to stay

The Bank of Canada warns that low interest rates may be over, causing concern for Canadian homeowners. With borrowing costs rising, more than a third of homeowners are worried about paying their mortgages. The Bank of Canada's senior deputy governor suggests that interest rates may not return to previous lows, and homeowners may face significantly higher payments when renewing their mortgages. Younger homeowners are particularly affected, with some seeing their mortgage payments double or triple. The strain on Canadians' finances may increase if the economy worsens. Rates traders are betting that the global tightening cycle is over and that monetary easing will begin in mid-2024.

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