Millennials who are saddled with debt such as costly mortgages might well bear the brunt of higher interest rates in the months to come, a new RBC report argues.

Older millennials, adults aged 35 to 44, had debt-to-disposable income ratios around 250 per cent in 2019, while Freestone noted that metric was roughly 150 per cent for the same age group in 1999.

Can confirm we’re sitting around 250% but this is after exercising significant restraint to not take on as much mortgage as the banks would have given us. Everyone I know who bought over the last couple of years went all out and I can’t imagine them being any lower than 300-350%.

  • Magister@lemmy.world
    4·
    10 months ago

    Some people have good incomes, but cannot anymore changes houses every 5 years because it’s out of control, for the price and interest rates, so they use their income to buy cars/RV.

    Also some are leasing even if it’s like 800$/month just to show their car, I know people who lease big Volvo, Porsche, etc.

    Me I keep my 10yo Sonata, and if it dies/crashes, I don’t think I’ll be able to buy anything more than 15k :-/ What’s available for 15k ? a 2006 Sunfire?