Millennials who are saddled with debt such as costly mortgages might well bear the brunt of higher interest rates in the months to come, a new RBC report argues.

Older millennials, adults aged 35 to 44, had debt-to-disposable income ratios around 250 per cent in 2019, while Freestone noted that metric was roughly 150 per cent for the same age group in 1999.

Can confirm we’re sitting around 250% but this is after exercising significant restraint to not take on as much mortgage as the banks would have given us. Everyone I know who bought over the last couple of years went all out and I can’t imagine them being any lower than 300-350%.

  • cheery_coffee@lemmy.ca
    3·
    1 year ago

    Probably a good time to buy bank stocks, and also build up your emergency fund.

    If you have a mortgage, make prepayments as they go straight to principal and will reduce your amortization and exposure to rate increases.

    I suggest you also run through your current mortgage in a mortgage calculator and use ratehub to get a good idea of what your upkeep will be, and use that to figure out your cash flow for post-renewal.