Canadian Insolvencies Rise To The Highest Level Since The Recession of 2009 - Kora Management
  • Mitch Speigel – Mortgage Agent
    Your Mortgage Group Professional
    Kora Management
    License #M08003984, FSCO #10315

  • Canadian Insolvencies Rise To The Highest Level Since The Recession of 2009

  •  

     

     

     

     

     

    Canadian households went from swimming in debt to drowning in it last year. Office of the Superintendent of Bankruptcy Canada (OSB) data shows a substantial climb for insolvencies in December. Every province in the country showed large growth, with half printing double digits. The swelling insolvencies led the national number of filings, to the highest level since the Great Recession.

    Canadians Filed The Most Insolvencies Since 2009

    Last year was a huge year for insolvencies, with every single province seeing a rise. There were 10,427 insolvency filings in December, up 13% from the same month last year. During the 12-months ending in December, the country saw 140,858 filings, up 9.3% from a year before. This is the highest level of insolvency filings the country has seen since 2009.

    Ontario Takes Top Spot For Insolvencies.

    Ontario is the province with the most filings in the country. The province represented 3,409 of the filings in December, up 13.7% from the same month last year. In the 12-months ending, there were 45,754 filings, up 15.0% compared to the same period a year before. This was the second-fastest growth in the country, just after Newfoundland.

    B.C. Sees Double-Digit Growth For Insolvencies

    B.C. made a large increase for both the monthly and annual numbers, but not as big as Ontario. The province saw 910 insolvency filings in December, up 15.8% from the same month last year. In the 12-months ending, there were 11,348 filings, up 10.4% compared to a year before. That means BC had the fifth-largest increase in the country last year.

     

    Insolvencies Are Rising In Every Canadian Province

    Last year was a strangely large year for insolvency growth. Every single province is seeing growth, with half the provinces in the double digits. The country is now seeing the most insolvency filings since the Great Recession. Considering unemployment is near record lows, and a recession is believed to be far off, this is an unusual situation.

    Mortgage and HELOC defaults buck the trend.

    Surprisingly, defaults on larger debts such as mortgages, HELOCs, and lines of credit remained relatively low through the year, although, defaults on the other traditional large debt, automobile loans increased.

    The highest defaults were from those aged sixty-five and up.

    It is not surprising that Canadians aged 65+ have the highest share of mortgage loans in arrears, even though the options for non-traditional seniors’ financing are more available than for those under 55.

    For more information on seniors’ financing, talk with your mortgage professional.  1-866-435-3748

    Cauliflower tonight:
    Leaving the core in,  cut half-inch steaks vertically; brush with olive oil and brown in a frying pan on medium-high. Remove and cool and put on an oven tray. Add olives, sun-dried tomatoes and parsley, (roughly processed), into any tomato sauce. Pour over steaks and roast in a 4000  oven for 15 minutes, or until tender.