Canadian Prime Minister Justin Trudeau’s friendship with Khalistanis is not hidden from anyone. Trudeau, captured by his love for Khalistan, shot himself in the foot by stating India. The economy and friends were slipping from his hands.
After the dispute with India, Justin Trudeau now seems to be in new trouble. Canada is going to face big problems next month. Loan interest rates can prove to be a big headache for Canada. Not only will it affect the people of Canada, but it can also have disastrous consequences for the economy there. Canada stands on the brink of this crisis. Next month is going to be a litmus test for Justin Trudeau. It will not be easy for Trudeau to overcome this challenge.
Challenge Before Justin Trudeau
Thousands of Canadians taking loans are going to get a shock next month. The impact of this shock can be seen in the Canadian government. The increased interest rates will affect the borrowers and the Canadian economy.
Actually, in Canada, there is an option to take a home loan at a fixed rate for five years. After five years, they renew with the new rate. Loans for thousands of home loan borrowers are due for renewal in the next few months. It was fine till now, but the real problem is that Canada has had a massive difference in interest rates in the last five years.
Trudeau In New Trouble
According to Reuters, loans of more than 75 thousand people will be renewed in Canada next month. This means that those who took a loan at a fixed rate of only 2 per cent five years ago will now have to repay the loan at interest rates of up to 6-7 per cent, affecting their EMI.
According to the report, 75,000 home buyers must renew their mortgage in the next few months. After this, home loans worth about $146 billion will be renewed next year. The big increase in interest rates in the last five years will significantly impact people.
Due to loan renewal and increased interest rates, not only will the borrowers be affected, but there will also be pressure on the property market and real estate. Loan default cases may increase, putting pressure on the banking sector. An Increase in EMI will strongly impact people’s expenses, and demand in the economy will come down. Its impact can be seen in many sectors. This is going to have a direct effect on the Canadian economy.
Got Into Trouble With Trudeau
This problem could be huge for Canadian PM Justin Trudeau. Inflation, declining spending power of people, and increasing pressure on the economy may prove difficult for Trudeau. Its effect can also be seen in Trudeau’s government. PM Trudeau’s popularity is already continuously declining; in such a situation, the increasing pressure on people’s pockets can be challenging for his government.
