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CategoryConsumer Debt

Credit Card hangover? Make 2016 a painless year….

debt animationWe’re well into January… and right about now, some of us are avoiding the mail for fear of seeing those holiday bills!  Ok, so besides avoiding the mail, what’s the best way to tackle those debts?

Here’s some helpful ‘did you know’ questions…  Enjoy! Continue reading “Credit Card hangover? Make 2016 a painless year….”

Mortgage cost today is $1380/mth for every $300k… and sharing high net worth secrets.

percentageFixed mortgage rates went up this week on the wholesale market.   Only about a 0.10% increase…  We are still way below 3.00% for 5 yr fixed rates. Hey, that’s pretty good!  (watch for the media to blow it out of proportion soon.. they seem to love feeding on negativity).

Thought I’d share some quick numbers..    Did you know that a $300k mortgage will still carry for $1380/mth?   And that’s with a 25 yr amortization.  If we go to a 30 year amort, the payment drops to $1221/mth.

Let’s increase the mortgage to $400k.. payments are $1840/mth and $1628/mth for a 25 and 30 year amortization, respectively.   Hey, these are still incredibly low mortgage rates.   Anything under 4.00% should be considered a gift.  (I’ll get into what Canada’s wealthy are doing in a few moments) Continue reading “Mortgage cost today is $1380/mth for every $300k… and sharing high net worth secrets.”

Personal debt level concerns are overblown…!

record low ratesThere’s a lot of talk in the media about Canadians carrying too much debt.   We’re getting hammered with messages of ‘record high personal debt levels’.   It’s true.  Our mortgage balances are higher, car loans are higher, student loans are higher, personal loans and lines of credit balances are higher.

Is this a problem?  Are Canadians in trouble?  Is this a reason to panic?  Let’s try to answer…

Well, here’s one very interesting stat that might crush that statement once and for all.   Canadians, on average, spend 14% of after-tax income on personal debt. 

Did I surprise you?   I’ll bet most people thought that number would be way higher given all the negative reports in the media.  Continue reading “Personal debt level concerns are overblown…!”

CMHC increased insurance premiums… again.. but still cheaper than 10 yrs ago.

CMHC Last May, CMHC increased all their insurance premiums.  The move wasn’t really a surprise to industry insiders.  CMHC’s product line has been reduced.  No more rental property mortgages.  No more refinancing mortgages.  No more secured lines of credit mortgages.

That’s a big chunk of business gone.  And when revenues go down for this crown corporation, what do they do?  They do what every reputable govt corp does.  They raise fees  and make the consumer pay more!   (check out my charts below) Continue reading “CMHC increased insurance premiums… again.. but still cheaper than 10 yrs ago.”

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