4 ms·

Well spotted. And that is mostly due to Harper and the Conservatives giving huge tax breaks to the very wealthy, and the super ridiculously wealthy.

refurb 7y ago
What do tax breaks have to do with private debt, namely mortgage and HELOC debt?
- dragonwriter 7y ago
  Tax breaks can (to use US examples, not sure how many have Canadian analogies: the mortgage interest deduction, California's property tax assesemt increase limitations, the capital gains tax exclusion on home sales) serve as incentives to take on debt for real estate purchases.
- sjg007 7y ago
  Mortgage interest is deductible. It lets you take on more house or refinance high interest debt.
  - jamie_ca 7y ago
    Mortgage interest is not tax-deductible in Canada.
    - sokoloff 7y ago
      Mortgage interest for commercial entities is tax deductible in Canada, just like any other business loan. It's only personal residential mortgages that are not deductible in Canada. It seems to me that this difference favors landlords over owner-occupants when it comes to buying property [which does not seem to be beneficial public policy]. With interest rates as low as they are, this is maybe only a medium-sized problem, but when interest rates rise again, this is likely going to exacerbate the difficulty of people beginning their home ownership "ladder" because landlords can literally outbid them by the difference in tax policy.
      - refurb 7y ago
        That's very different than what the OP was talking about, no?
        sokoloff 7y ago
        Which OP? Many upthread are talking about mortgages a subset of which would be deductible in Canada.
- hackbinary 7y ago
  Because of government cutbacks on public spending and erosion of the 'welfare' state. Public policy and investment in housing for ordinary people while allowing the mega elite to extract as much wealth for themselves. The non-elite then use debt to maintain their standards of living.

refurb 7y ago

What do tax breaks have to do with private debt, namely mortgage and HELOC debt?

dragonwriter 7y ago
Tax breaks can (to use US examples, not sure how many have Canadian analogies: the mortgage interest deduction, California's property tax assesemt increase limitations, the capital gains tax exclusion on home sales) serve as incentives to take on debt for real estate purchases.
sjg007 7y ago
Mortgage interest is deductible. It lets you take on more house or refinance high interest debt.
- jamie_ca 7y ago
  Mortgage interest is not tax-deductible in Canada.
  - sokoloff 7y ago
    Mortgage interest for commercial entities is tax deductible in Canada, just like any other business loan. It's only personal residential mortgages that are not deductible in Canada. It seems to me that this difference favors landlords over owner-occupants when it comes to buying property [which does not seem to be beneficial public policy]. With interest rates as low as they are, this is maybe only a medium-sized problem, but when interest rates rise again, this is likely going to exacerbate the difficulty of people beginning their home ownership "ladder" because landlords can literally outbid them by the difference in tax policy.
    - refurb 7y ago
      That's very different than what the OP was talking about, no?
      - sokoloff 7y ago
        Which OP? Many upthread are talking about mortgages a subset of which would be deductible in Canada.
hackbinary 7y ago
Because of government cutbacks on public spending and erosion of the 'welfare' state. Public policy and investment in housing for ordinary people while allowing the mega elite to extract as much wealth for themselves. The non-elite then use debt to maintain their standards of living.