Economy
Recession Fears Loom, 51% of Canadians Would Miss Mortgage Payment Within Three Months

From RateFilter.ca
New data shows that Canadians are struggling with housing costs, with 62% spending more than the recommended 30% of pre-tax income on housing. Homeowners aren’t as financially secure as presumed, especially those holding mortgages. A concerning 51% of mortgage holders couldn’t survive more than three months without their primary income. This financial strain underscores the urgent need for both individuals and policymakers to address housing affordability.
Key Takeaways
- 51% of mortgage holders could not make it more than three months without their primary income without missing a payment; 16% couldn’t last even one month.
- 62% of Canadians exceed the CMHC’s recommended 30% limit on housing expenses, with the average household spending 37% of their pre-tax income on housing.
- Homeowners generally spend less on housing than renters (average of 34% vs. 43% of their pre-tax income). However, this is skewed by the 35% of homeowners who are mortgage-free. Mortgage holders spend an average of 41% of their income on housing.
The Hidden Struggles Behind the Housing Data
For many Canadians, the dream of homeownership is being challenged by a worrying financial reality. New data reveals a landscape where both homeowners and renters are grappling with costs that exceed the Canada Mortgage and Housing Corporation’s (CMHC) recommended limit of spending no more than 30% of pre-tax income on housing.
Homeowners Not as Secure as Assumed
Although homeowners have traditionally enjoyed a degree of financial security, the numbers tell a different story. Yes, 35% of homeowners are mortgage-free, which brings down the average housing expenditure for this group to 34% of pre-tax income. However, that percentage can give a misleading impression of overall financial well-being.
The Precarious Position of Mortgage Holders
When you focus on homeowners with mortgages, the picture becomes quite bleak. These individuals are devoting a whopping 41% of their pre-tax income to housing. Alarmingly, over half (51%) couldn’t manage more than three months without their main source of income; 16% would be in trouble within just a month.
Ongoing Financial Strain Amid Past Rate Increases
Over the past 18 months, we’ve seen a series of rate hikes from the Bank of Canada, which has contributed to an ongoing financial strain for many Canadians. These historical increases have only intensified concerns about housing affordability and financial stability, irrespective of what future rate changes may or may not occur. This backdrop of rising rates adds another dimension to the already challenging landscape of housing costs.
A Critical Time for Financial Health
“These statistics corroborate what we’ve been hearing anecdotally,” says Andy Hill, co-founder of ratefilter.ca. “Many Canadians feel like they’re at a breaking point due to higher interest rates. Even if the Bank of Canada pauses the rate hike, these borrowers will still be dealing with rates at a 20-year high.”
The Fragile Job Market
The data is even more unsettling when considering job security. Despite a low unemployment rate, 16% of mortgage holders could not withstand a month without income before falling behind on their mortgage payments.
Conclusion
These figures underscore the urgency for both policymakers and individuals to address the rising costs of housing in Canada. While the statistics offer a broad view, the individual stories highlight an unsettling financial instability lurking beneath the surface.
Proportion of Pre-Tax Income on Housing
R1. Please think about how much you spend on housing each month. This would include mortgage/ rent, property tax, strata fees, and utility costs such as electricity, heat, water, and other municipal services. Approximately what percentage of your pre-tax income do you spend on housing?
Methodology
- These results are based on an online survey of a representative sample of 1,548 adult Canadians (including 1,028 homeowners and 650 mortgage holders) surveyed using Leger’s panel, LEO, from October 13-16, 2023.
- As a non-random internet survey, a margin of error is not reported. For comparison, a probability sample of n=1,548 would have a margin of error of ±2.5 percentage points, 19 times out of 20.
- Any discrepancies between totals are due to rounding.
Business
Canada may escape the worst as Trump declares America’s economic independence with Liberation Day tariffs

MxM News
Quick Hit:
On Wednesday, President Trump declared a national emergency to implement a sweeping 10% baseline tariff on all imported goods, calling it a “Declaration of Economic Independence.” Trump said the tariffs would revitalize the domestic economy, declaring that, “April 2, 2025, will forever be remembered as the day American industry was reborn.”
Key Details:
-
The baseline 10% tariff will take effect Saturday, while targeted “reciprocal” tariffs—20% on the EU, 24% on Japan, and 17% on Israel—begin April 9th. Trump also imposed 25% tariffs on most Canadian and Mexican goods, as well as on all foreign-made cars and auto parts, effective early Thursday.
-
Trump justified the policy by citing foreign trade restrictions and long-standing deficits. He pointed to policies in Australia, the EU, Japan, and South Korea as examples of protectionist barriers that unfairly harm American workers and industries.
-
The White House estimates the 10% tariff could generate $200 billion in revenue over the next decade. Officials say the added funds would help reduce the federal deficit while giving the U.S. stronger leverage in negotiations with countries running large trade surpluses.
Diving Deeper:
President Trump on Wednesday unveiled a broad new tariff policy affecting every imported product into the United States, marking what he described as the beginning of a new economic era. Declaring a national emergency from the White House Rose Garden, the president announced a new 10% baseline tariff on all imports, alongside steeper country-specific tariffs targeting longstanding trade imbalances.
“This is our Declaration of Economic Independence,” Trump said. “Factories will come roaring back into our country — and you see it happening already.”
The tariffs, which take effect Saturday, represent a substantial increase from the pre-Trump average U.S. tariff rate and are part of what the administration is calling “Liberation Day” for American industry. Reciprocal tariffs kick in April 9th, with the administration detailing specific rates—20% for the European Union, 24% for Japan, and 17% for Israel—based on calculations tied to bilateral trade deficits.
“From 1789 to 1913, we were a tariff-backed nation,” Trump said. “The United States was proportionately the wealthiest it has ever been.” He criticized the establishment of the income tax in 1913 and blamed the 1929 economic collapse on a departure from tariff-based policies.
To underscore the move’s long-anticipated nature, Trump noted he had been warning about unfair trade for decades. “If you look at my old speeches, where I was young and very handsome… I’d be talking about how we were being ripped off by these countries,” he quipped.
The president also used the moment to renew his push for broader economic reforms, urging Congress to eliminate federal taxes on tips, overtime pay, and Social Security benefits. He also proposed allowing Americans to write off interest on domestic auto loans.
Critics of the plan warned it could raise prices for consumers, noting inflation has already risen 22% under the Biden administration. However, Trump pointed to low inflation during his first term—when he imposed more targeted tariffs—as proof his strategy can work without sparking runaway costs.
White House officials reportedly described the new baseline rate as a guardrail against countries attempting to game the system. One official explained the methodology behind the reciprocal tariffs: “The trade deficit that we have with any given country is the sum of all trade practices, the sum of all cheating,” adding that the tariffs are “half of what they could be” because “the president is lenient and he wants to be kind to the world.”
In addition to Wednesday’s sweeping changes, Trump’s administration recently imposed a 25% tariff on Chinese goods tied to fentanyl smuggling and another 25% on steel and aluminum imports—revoking previous carve-outs for countries like Brazil and South Korea. Future tariffs on semiconductors, pharmaceuticals, and raw materials such as copper and lumber are reportedly under consideration.
Trump closed his remarks with a message to foreign leaders: “To all of the foreign presidents, prime ministers, kings, queens, ambassadors… I say, ‘Terminate your own tariffs, drop your barriers.’” He declared April 2nd “the day America’s destiny was reclaimed” and promised, “This will indeed be the golden age of America.”
2025 Federal Election
Three cheers for Poilievre’s alcohol tax cut

By Franco Terrazzano
The Canadian Taxpayers Federation applauds Conservative Party Leader Pierre Poilievre’s commitment to end and reverse the alcohol escalator tax.
“Poilievre just promised major alcohol tax cuts and taxpayers will cheers to that,” said Franco Terrazzano, CTF Federal Director. “Poilievre’s tax cut will save Canadians money every time they have a cold one with a buddy or enjoy a glass of Pinot with their better half and it will give Canadians brewers, distillers and wineries a fighting chance against tariffs.”
Today, federal alcohol taxes increased by two per cent, costing taxpayers about $40 million this year, according to Beer Canada.
Poilievre announced a Conservative government “will axe the escalator tax on wine, beer and spirits back to 2017 levels, ending the automatic annual tax increases.”
The alcohol escalator tax has automatically increased excise taxes on beer, wine and spirits every year, without a vote in Parliament, since 2017. The alcohol escalator tax has cost taxpayers more than $900 million since being imposed, according to Beer Canada.
Taxes from multiple levels of government account for about half of the price of alcohol.
Meanwhile, tariffs are hitting the industry hard. Brewers have described the tariffs as “Armageddon for craft brewing.”
“Automatic tax hikes are undemocratic, uncompetitive and unaffordable and they need to stop,” Terrazzano said. “If politicians think Canadians aren’t paying enough tax, they should at least have the spine to vote on the tax increase.
“Poilievre is right to end the escalator tax and all party leaders should commit to making life more affordable for Canadian consumers and businesses by ending the undemocratic alcohol tax hikes.”
-
Daily Caller2 days ago
Biden Administration Was Secretly More Involved In Ukraine Than It Let On, Investigation Reveals
-
Business2 days ago
Trump says ‘nicer,’ ‘kinder’ tariffs will generate federal revenue
-
2025 Federal Election2 days ago
PM Carney’s Candidate Paul Chiang Steps Down After RCMP Confirms Probe Into “Bounty” Comments
-
2025 Federal Election2 days ago
Poilievre, Conservatives receive election endorsement from large Canadian trade union
-
Business2 days ago
Biden’s Greenhouse Gas ‘Greendoggle’ Slush Fund Is Unraveling
-
2025 Federal Election2 days ago
RCMP Confirms It Is ‘Looking Into’ Alleged Foreign Threat Following Liberal Candidate Paul Chiang Comments
-
2025 Federal Election1 day ago
Liberal MP Paul Chiang Resigns Without Naming the Real Threat—The CCP
-
2025 Federal Election1 day ago
Fight against carbon taxes not over yet