Unless you’ve been living under a rock for the past 4 years, it’s impossible to not know the Federal govt’s concern about Canada’s Personal Debt level. The media has covered this topic extensively. After all, bad news sells more than good news…..
Here’s some current stats from Statistics Canada that really gets my blood boiling!…. We now carry a total debt load equal to around 164% of our annual household income. That’s at an all-time high…. The govt is convinced that we are spending too much or our income towards real estate… They have made numerous changes to mortgage lending rules that make it much tougher to qualify for a mortgage. If there really is a problem, why is the govt focusing on low-interest rate products like mortgages?
Current mortgage rates are at around 3.00%. Current credit card rates range from 9.99% to 19.99%….personal loan and car loan rates range from 6.00% to 9.00% and up. Aren’t low-interest rate products better than high-interest rate products? We have not seen any changes to these non-mortgage debt products…. Who benefits from higher rates? Yup, your banker!… Continue reading “Personal Debt levels and Mortgage Debt levels”