Canadas Debt Liest Catch Debt Levels And Mortgages
If you listen to reports from the media, you'll learn that Canadians are carrying the highest debt to income ratios of any country in the G7. You'll also hear that household debt has soared to 171 percent of the income left after paying for necessities! That puts us in danger of financial ruin and devastation of our economy, right? Maybe not.
Not Quite What It Seems
In truth, you're hearing only the talk about the certainty of impending collapse or a repeat of the devastation that occurred in the 1980's. What you aren't hearing is that our assets are actually worth 10 trillion dollars. That's right, 10 trillion dollars. So despite what you may see on TV, there is evidence that although Canadian household debt is at a record high, Canadians are still in good financial shape.
10 trillion dollars can hard to put into perspective since none of you are likely to be comparing your debt to asset ratios in trillions of dollars. To fully understand just what that hug number means, it makes more sense to say that for the average Canadian, for every $1.80 that you owe in debt and mortgages, you own approximately $10.00 worth of tangible assets. With this in mind, is that really as bad as you've been lead to believe? While debt is increasing rapidly overall, so is our population. More people, borrowing more money equates to more debt, yet the fact is, Canadians are becoming richer despite this increased debt.
How Canadian Household Debt Numbers Affect you
So how do these debt statistics affect you? In two words - they don't. While statistical information has its place, all that matters is your own financial health and standing. Currently, we are realizing all-time lows for some fixed and variable rate mortgages. Now is really the time to evaluate your financial position and take advantage of these low mortgage rates. Whether you are looking at getting a first time home buyer loan so that you can purchase your very first house, or whether you want to look into mortgage refinancing, these low interest rates can put you among the Canadians whose assets outweigh their debts.
Dominion Lending Centres can help you take advantage of these low mortgage interest rates and improve your financial standing. Contact us and have one of our experienced mortgage brokers will speak with you about the options available to you.Request Mortgage Info