Skip to content

Tagmortgage arrears

Looser Mortgage Standards Hit the UK! Is Canada Next?!

Home Finances

There’s nothing surprising about the loosening of mortgage standards to spur growth. In the last real housing bubble of 1990, banks and government brought in stricter lending rules, making it tougher for borrowers to get a mortgage.

Fast forward to the present. We’ve yet to see a housing bubble or market crash, but the government has taken drastic – perhaps even unheard of – precautions to slow the housing market.

In 1990, I was working for the largest trust company in Canada. I can tell you that it has never been harder to qualify for a mortgage than it is today!

Continue reading “Looser Mortgage Standards Hit the UK! Is Canada Next?!”

Yes, you can still buy a home in Canada… Keeping the dream alive

Homeownership Image, March 2018

Canada’s a nation of immigrants. It truly is the land of opportunity. Chances are, your parents, grandparents or great grandparents came here from another country.

There are many reasons why people left their homeland. Some left by choice to pursue a better life. Others had to leave for safety reasons. Whatever the reason, most of us have a common goal: A better life.

Homeownership has always been an important part of that dream. We want to own something. We want to plant roots. There’s a pile of statistics to support this claim. In my 28 years in the financial services industry, I can attest to this claim.

Continue reading “Yes, you can still buy a home in Canada… Keeping the dream alive”

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…!”

News stats..Higher debt, but lower defaults

debt aminationSaw this article today about higher consumer debt levels BUT lower defaults.   Equifax Canada is quoted as saying that consumer debt rose by 7.2% in  the second quarter 2014 to $1.45 trillion ,compared with $1.35 trillion from a year ago. This includes credit cards, loans, lines of credits and mortgages.

The average Canadian now has $20,759 in personal debt, excluding mortgages.   That’s a 1.5% increase since last year.   So that means mortgage debt has risen by around 7%.    Here’s a heads up… you will see and hear articles sounding the panic alarm… again.

Well, before we hit that panic button, there was one more stat that we should pay attention to.   DEFAULTS.   Defaults are at their lowest level since 2008.  If higher consumer debt levels and lower defaults sound strange to you, it shouldn’t.    I’ll explain… Continue reading “News stats..Higher debt, but lower defaults”

Personal Debt level concerns are overblown according to Equifax stats.

Equifaxdebt amination So here we go again.. More stats that show our personal debt levels aren’t out of control… That’s right, I said ‘aren’t’ out of control.  Equifax Canada says our defaults are at record low levels and we are paying off our debts faster.   This doesn’t come as any surprise to me.   Anyone that’s followed my posts knows that I have questioned all the popular articles telling us we are not managing our debts responsibly.

You’ve seen the reports… ‘Personal debts at record high levels’…..’Personal Debt crisis’.     We’ve been hammered with the same headlines for the past few years.  I just wasn’t seeing this with my readers or my clients… I kept seeing consumers wanting  to take advantage of these record low interest rates to invest or improve their homes (why is that a bad thing?).   That’s not bad debt in my opinion… that’s good debt.. And now we have some stats to back up what I have experienced. Continue reading “Personal Debt level concerns are overblown according to Equifax stats.”

%d bloggers like this: