Constantly increasing interest rates will increase Canada's problems, loan will become a problem for Justin Trudeau

After the dispute with India, now the issue related to the general public is becoming a problem for Justin Trudeau. Constantly rising interest rates in Canada could become a problem for Justin Trudeau. Constantly increasing interest rates will reduce people's spending ability, let us know how this will affect the country's economy and Justin Trudeau.

Canadian Prime Minister Justin Trudeau is trying his best to get Canada's economy back on track. After the dispute with India, now the issue related to the general public is becoming a problem for Justin Trudeau. The continuously rising interest rates in Canada are becoming a problem for Justin Trudeau. There is a fear that in the coming time their troubles may increase due to loans. Due to which people's home loans can become expensive. Obviously, when home loans become expensive, the spending power of people will also reduce, which will affect the country's economy. Let us know how Lone Justin Trudeau will be in trouble…

This is the whole matter

Actually, in Canada, people can take a home loan at a fixed rate for 5 years, then renew it at new rates after 5 years. Now Canada's problem and the challenge before Justin Trudeau is that thousands of home loans are going to be renewed in the next few months. At the same time, there is a lot of difference between the interest rates 5 years ago and now. Right now interest rates are skyrocketing. According to Reuters, this time those whose home loans are to be renewed had taken the loan at a fixed rate of 2 percent 5 years ago. At present, this rate can reach up to 7 percent. In such a situation, the burden on the pockets of those who renew home loan may increase. According to Canadian brokers, this time the EMI of a large number of home loans is going to increase by a few hundred dollars.

How many home loans are to be renewed?

According to an estimate, loan renewal notices will be sent to about 75,000 home buyers. After which a total of home loans worth $146 billion are to be renewed by next year. This amount is more than Rs 11 lakh crore. According to the brokerage house, this may lead to pressure in the property market and increase in loan default cases. Also, there are indications of further increase in interest rates in the coming time and at present no softening is visible till next year. Now in such a situation, if there is no loan default then due to high EMI, there will be a huge impact on people's expenses which will also affect the economy.

Justin Trudeau's dilemma

The Canadian PM's party is currently in minority in the country. In such a situation, burdening the pockets of the general public can become a problem for Justin Trudeau. Trudeau's troubles will increase due to decreasing expenditure of the people and decreasing demand in the economy. If the problems of the general public increase, then Trudeau's popularity may also fall due to this. In such a situation, maintaining his coalition government is becoming the biggest challenge for Trudeau.