A new report shows interest rates are rising faster than income for Canadians — providing a wake-up call to consumers who are taking on unsustainable amounts of debt. 'Everything on their balance sheet looks great but, all of a sudden, when you look at these rising interest rates, that's going to start pinching their cash flow,' said Peter Miron of Environics Analytics. have the highest net worth in Canada at more than $1.1 million — but it also found they're feeling the biggest financial squeeze because of the rising rates. It just happens that in Vancouver, Vancouver households are already carrying much more significant levels of mortgages," Miron said. Because wages aren't rising as fast as interest rates, consumers are augmenting their income with more debt, he said, which leaves them vulnerable if interest rates rise or their income falls.

Source: CBC News September 19, 2018 15:11 UTC