Fri Aug 12, 2022 – 6:04 pm EDT
(LifeSiteNews) — Amid decades-high inflation and repeated interest rate hikes, the Office of the Superintendent of Bankruptcy Canada’s latest report shows an 11 percent increase in insolvencies among Canadians compared with this time last year.
While bankruptcies rose 11 percent nationwide – a jump that represents over 26,000 additional insolvency filings when compared with Q2 last year – Canada’s most populous province of Ontario suffered an even more staggering increase of 16.5 percent.
According to the Toronto Star, one of the biggest factors behind the increase in bankruptcies is Canada’s declining housing market, which just before the downturn had hit record highs during the so-called pandemic due to historically low interest rates and massive government subsidies.
Explaining how this type of insolvency occurs, senior economist David Macdonaldwith the Canadian Centre for Policy Alternatives outlined to the Star that when home prices are high, a person can typically sell a home for enough money to pay off the existing debt they owe on the home. However, when prices drop to a figure that is lower than what is owed, the person becomes unable to “cover the loan” and ends
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