2024-07-17 04:00:00
Debt and rising interest rates are forcing more and more Quebecers to give up the keys to their homes.
• Also read: It costs $6,000 more for a down payment compared to last year
• Also read: Here is the down payment required to buy property in different cities in Quebec 2024
• Also read: Housing crisis: “It’s the war between tenants and owners”
During the first six months of 2024, mortgage abandonment jumped 27% in Quebec compared to the same period last year, according to the firm JLR. These are cases where the owner of a mortgaged building voluntarily abandons it for the benefit of his creditor.
At the same time, the province recorded a 21.1% increase in insolvency filings (including bankruptcies and consumer proposals) over the 12 months, the highest rate after Ontario, Royal LePage recently noted in a study.
“The financial burden on families has worsened due to continuous increases in interest rates and the rise in the cost of living, without a doubt,” said Marc Lefrançois, a licensed real estate broker at Royal LePage Tendance.
“Family savings, which peaked during the pandemic, came into play as borrowing costs and the price of basic necessities increased,” he said.
Financial difficulties erupt
In addition, over the course of a full year, the number of acts of financial difficulty recorded by the Quebec Land Registry increased by 39% compared to 2022, according to an analysis of the Duty.
These actions include failure to pay a mortgage or property tax, bankruptcy or foreclosure.
As for property seizures, their number increased by almost 18% to 345 last year, a number higher than the number in 2019, before the health crisis, notes The duty.
#number #property #foreclosures #Quebec #jumps