Rise in interest rates could cause trouble for some Canadians: TransUnion
TORONTO — Up to one million Canadian borrowers could face problems paying their debts if interest rates rise by a full percentage point including some of the highest rated consumers, a report released Tuesday by TransUnion suggests.
The credit reporting agency said that while the majority of Canadians will not be materially impacted in the near term by an interest rate increase, there is a “material subset” that may be challenged.
Jason Wang, TransUnion’s director of research and industry analysis in Canada, said even those with what are considered “super-prime” credit scores could struggle because credit scores measure past behaviour.
“If there’s a rate increase, are you still able to do that in the future? That is the question,” Wang said.