Canadian Household Debt Now Highest Among G7 Countries

 Canadian Household Debt Now Highest Among G7 Countries

May 24, 2023

Canadians owe more money than any other group of people in the G7 countries, says the Canada Mortgage and Housing Corporation. G7 means Group of Seven, and also includes France, Germany, Italy, Japan, the UK and the USA. A big reason why Canadians owe so much is because house prices are really high.

In the last 10 years, people in the US and the UK have been able to reduce the money they owe, but not Canadians. If a big financial crisis were to happen, the housing agency says Canadians would be in a lot of trouble because they owe so much money.

Most of the money Canadians owe comes from home loans. When the price of houses increases, Canadians have more debt. An important economist says that if more people want to buy houses, Canada needs to make it more affordable to do so.

Right now, the average price of a home in Canada is really high, especially in cities like Toronto and Vancouver. They are among the top 10 most expensive cities in the world to buy a house. The price of houses in Canada has more than doubled since 2011.

The Canadian government is trying to make housing more affordable. They've even stopped foreigners from buying homes in Canada for two years. Some people think the government should also increase the number of houses, as more and more people are moving to Canada.

Comprehension Questions: 
1. What is one reason Canadians owe so much money?
a) They are not making enough money. b) The cost of education is high.
c) House prices are very high. d) The cost of living is high.
2. What would happen if a big financial crisis were to occur?
a) Canadians would benefit.
b) Canadians would be in trouble because of high debt.
c) The UK would suffer.
d) The house prices would drop.
3. What has happened to the price of houses in Canada since 2011?
a) It has reduced. b) It has increased by a very small amount.
c) It has remained the same. d) It has increased very quickly.
4. What is the Canadian government's strategy to make housing more affordable?
a) Lower the taxes.
b) Increase the minimum wage.
c) Increase the interest rates.
d) Restrict foreigners from buying homes for two years.
 
5. What is the relationship between house prices and debt in Canada?
a) As house prices increase, Canadian debt decreases.
b) As house prices increase, Canadian debt increases.
c) House prices and debt are not related.
d) As house prices decrease, Canadian debt increases.
6. What happened to the debt of people in the US and the UK in the past decade?
a) It went up.
b) It remained the same.
c) It went down.
d) It doubled.
7. What is the potential risk if Canadians continue to accumulate more debt?
a) They might enjoy more luxurious living.
b) They might face severe issues during a financial crisis.
c) The economy of Canada will flourish.
d) The Canadian government will earn more in taxes.
8. Why are more and more people moving to Canada?
a) Because housing is affordable.
b) Because houses are cheaper in Canada compared the USA or UK.
c) To discover gold in the Yukon.
d) The article does not provide a specific reason.
9. What might happen if the number of people moving to Canada increases?
a) The demand for houses will increase
b) The demand for houses may decrease
c) The demand for houses will remain the same
d) The demand for houses is not affected by population growth
10. What is the main idea of the article?
a) The Canadian government is stopping foreigners from buying homes.
b) Canadians owe more money than people in other G7 countries due to high housing prices.
c) House prices in Canada have doubled since 2011.
d) People are moving to Canada more frequently now.

 II Write a response to the question:

1. Do you think a restriction on foreign home buyers is fair? Do you think it will make housing more affordable?