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Economic Viewpoint

Simulation results: How vulnerable are Quebecers to an interest rate increase?

June 2, 2016
François Dupuis, Vice-President and Chief Economist • Hélène Bégin, Senior Economist

As elsewhere in Canada, Quebecers’ debt loads have gone up much faster than their incomes in the last few years. However, because of the drop in interest rates, the weight of monthly payments has stayed reasonable for households overall. The situation seems better than it is for Canada as a whole and for Ontario since the debt rate is lower in Quebec. Failing an unexpected shock, such as a rapid, major increase in interest rates, households will continue to have a relatively good ability to meet their financial obligations, with fewer than 5% still having trouble paying off their debts. This Economic Viewpoint includes two simulations of interest rate hikes, which show that a rise would have an impact on households’ financial situation.