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Canadians piling up ‘good debt,’ report says

Date Posted: August 27, 2015

In a new report on Canadian debt, 80% of those surveyed said “smart debt” such as mortgages, home repairs/renovations and education expenses topped the list of debt sources.  The average amount of debt saw an increase of $16,860 compared to last year according to the Bank of Montreal.

With the hot housing markets being up 6 per cent from the first half of this year, mortgages are said to be a "significant contributor" for 49 per cent of those surveyed.  Home renovations or repairs also contributed to one-third of Canadians debt, part of this due to an aging population spending more to fix their homes. 

With inexpensive credit and extended loan terms there is also a concern for those accumulating “luxury debts” such as vacations, entertainment, and home electronics.  This year we have also hit a record high for car purchases which contributed to 46 per cent of Canadian’s debt levels.

It is always a good idea to work with a professional to see how new debt impacts your overall financial plan.  

 

Click here to read the full article at The Globe and Mail.