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Money High Debt Loads Or Not, Canadians Are Rocking This Mortgage Thing

18:01  05 march  2018
18:01  05 march  2018 Source:   huffingtonpost.ca

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Limiting Preliminary Inquiries Will Make Things Worse For The Accused. Canadians ’ Debt Stabilizes, And All It Took Was A Mortgage Collapse. So let's be thankful Canadians are handling these heavy debt loads right now, but let's not get complacent.

a big thing .” The are entering their senior years in debt . For many, that means a How to Get the Best Mortgage Refinance Rate. do this by paying down debts , checking your credit report for errors or . are loads of fun — until they're not.

House prices in many parts of Canada have been soaring for years. Mortgages are growing larger and the number of households with extreme levels of debt is multiplying rapidly.

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National Bank of Canada

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“So all these things combine to increase prices,” he said, adding that Vancouverites pay 49.4 cents North America's Most Expensive Gasoline Prices: High and Evil in Vancouver, Canada !! Canucks sign defenceman Alex Biega to two-year extension. High Debt Loads Or Not , Canadians Are

High Debt Loads Or Not , Canadians Are Rocking This Mortgage Thing . S & P raised its economic risk rating for the Canadian banking sector by 1 point. Mortgage Fraud Ahead For Canada , S & P Ratings Agency Warns - www.huffingtonpost.ca.

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So you'd think that we would be seeing an increase in the number of households that are having a hard time paying off their mortgages.

Not so. In fact, the opposite is happening. The rate of mortgages in arrears in Canada has fallen to its lowest in more than a decade. Just 0.24 per cent of mortgages were three months or more past due in November of 2017, the latest month for which data is available, according to the Canadian Bankers Association.

Somehow, the situation is even better in the provinces with the highest house prices. In British Columbia, 0.16 per cent of mortgages were in arrears, the lowest since 2008. And in Ontario, the arrears rate is at an all-time low — a tiny 0.09 per cent.

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High Debt Loads Or Not , Canadians Are Rocking This Mortgage Thing .http://ow.ly/z1HH30j26vW. Mortgage Professionals Canada Launches New Consumer Focused Advocacy Campaign Let your MP know .http://ow.ly/MjaR30 bE 9Sm.

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In other words, just about everyone is making their payments.

There are a number of reasons for this. First and foremost, mortgage rates have been at or near record lows for almost the past decade, helping to keep mortgage payments stable even as house prices rose. We may be taking out huge mortgages, but we're making relatively small payments on them.

Another likely reason is the 2016 tightening of mortgage rules for those who put down less than 20 per cent. These highest-risk borrowers now have to pass a stress test to ensure they can afford higher rates. So in theory, the most recent crop of borrowers should be better able to handle their debt.

But as this Better Dwelling blog points out, there is another reason: We have a very "liquid" housing market these days, meaning it's very easy to convert your home to cash if you can't afford your mortgage. In a tougher market, where it's harder to sell a home, many more mortgage holders would be stuck with a debt they can't afford.

Millennials, Gen Z Canadians are borrowing money at faster rates than baby boomers: report

  Millennials, Gen Z Canadians are borrowing money at faster rates than baby boomers: report A new report by TransUnion Canada reveals that Canada's millennial and Gen Z consumers are making headwinds on baby boomers in the consumer credit market. According to the report, the country's youngest borrowers are leading in credit growth, with their overall share of the Canadian market rising to 12.2 per cent over the past two years.The report found that the share of all credit-active consumers in the millennial and Gen Z age ranges increased from 28 per cent in Q4 2014 to 30 per cent in Q4 2016, and increased even further to 31.6 per cent in Q4 2017.

Household debt levels have continued to spiral higher throughout 2015, aided by rock -bottom interest rates. Aside from mortgages , consumer debt — credit cards, auto loans, etc. — has also trended higher however. “It’s not just first-time homebuyers, [it’s] younger Canadians , or those impacted

Not satisfied with the Liberals’ refusal to take seriously the concerns of Canadians struggling with their mortgages , I tabled a second motion on June 13 — this time, asking Albertans have highest debt load in Canada , Equifax says. The lesson home buyers should take from RBC’s mortgage rate hike.

And so here's the bad news. The experts are forecasting a slowdown for the housing market. National Bank of Canada recently predicted that both Toronto and Vancouver will see falling prices this year, largely thanks to tougher new mortgage rules and higher mortgage rates. In the wake of British Columbia's budget and its 30-point plan to cool home prices, TD Bank is predicting a 5-per-cent decline in prices in Vancouver.

Major Banks Raise Mortgages Rates, And Experts Say This Is Just The Beginning

If the market softens, it may not be quite as easy to offload a home in the coming months as it has been recently. Couple that with the fact that about half of Canadian mortgages will renew this year, into an environment of rising interest rates, and it's easy to see trouble ahead.

So let's be thankful Canadians are handling these heavy debt loads right now, but let's not get complacent. The days of easy credit and easy home sales won't be around forever.

No optimal level for household debt: feds .
With a popular measure that shows Canadians' soaring debt remains in record-breaking territory, the federal government has acknowledged internally there's no way of knowing whether the burden has climbed too high. A recently released federal analysis, prepared for Finance Minister Bill Morneau, said the country's household-debt-to-disposable-income ratio has been steadily rising since 1990, when it was 90 per cent. That translates to 90 cents in debt for every dollar of household disposable income.

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