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

18:01  05 march  2018
18:01  05 march  2018 Source:   Huffington Post Canada

'The not so golden years' — a quarter of retired Canadians in debt, survey suggests

  'The not so golden years' — a quarter of retired Canadians in debt, survey suggests A "worry-free retirement" may be a thing of the past, according to a new Sun Life Financial survey, which finds that a quarter of retired Canadian are in debt in their golden years. define("homepageFinanceIndices", ["c.deferred"], function () { var quotesInArticleFormCode = "PRMQAP"; var config = {}; config.indexdetailsurl = "/en-ca/money/indexdetails"; config.stockdetailsurl = "/en-ca/money/stockdetails"; config.funddetailsurl = "/en-ca/money/funddetails"; config.etfdetailsurl = "/en-ca/money/etfdetails"; config.recentquotesurl = "/en-ca/money/getrecentquotes"; config.

Canadians Are Totally Rocking This Mortgage Thing . So let's be thankful Canadians are handling these heavy debt loads right now, but let's not get complacent.

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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


More evidence of fraud in Canadian mortgages, warns ratings agency S&P

  More evidence of fraud in Canadian mortgages, warns ratings agency S&P S&P Global Ratings says it expects more evidence of Canadian residential mortgage fraud could emerge amid high household debt and home prices. The ratings agency raised its economic risk rating for the Canadian banking sector to three from two on a 10-point scale. The increase did not result in a change to any of the bank ratings. S&P; said it believes that high house prices and household debt relative to household disposable income increase incentives for fraud such as overstating income in order to meet a lender's qualifying criteria.

For one thing , mortgage debt in Canada is close to 70% of GDP, not far from the peak in the US before it all went wrong As a result, the ranks of Canadian mortgage borrowers with high loan-to-income ratios has jumped in recent years

TORONTO - Canadians have pushed their debt levels to an eight-year high in a climate of ultra-low The latest report of Canadian debt trends by TransUnion found the average consumer's non- mortgage debt load But It's Not Without Some Life-Changing Lessons. Phylicia George, Canadian Olympic

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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.

Laurentian Bank reviewing problem mortgages

  Laurentian Bank reviewing problem mortgages MONTREAL - Laurentian Bank expects to complete its review of problematic loans sold to an unnamed lender by the fiscal second quarter, and will fix or repurchase any remaining mortgages that failed to meet the proper criteria. The Montreal-based lender — which said late last year it discovered mortgages that did not meet documentation and eligibility requirements — is implementing enhanced processes to avoid similar problems going forward, its chief executive said."We are increasing governance across the board," Laurentian's chief executive Francois Desjardins told a conference call discussing the bank's fiscal first-quarter results on Wednesday.

Canadian homeowners carry an average of 5,000 in mortgage debt , with higher amounts The prospect of rising interest rates has led to questions about whether Canadians will be able to service their debt loads . They feel they’re prepared, but when life happens, they’re not prepared.

Total consumer debt load now at more than .7 trillion. Instalment loans the latest high -rate danger for Canadians . 'The not so golden years' — a quarter of retired Canadians in debt , survey suggests February 24, 4:00 AM ET read comments.

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.

I’ve compiled 3 signs showing that Canadians are managing their debt much more responsibly than the media is currently reporting. That’s just not cool and I’m not for it. But, things happen, so debt consolidation through mortgage refinancing is an option.

This gives Canadian households one of the highest debt -to-income ratios in the world. Equifax lamented that Millennials only added 2.1%, or C7, on average to their load of consumer debt , now amounting to C,203 (not including mortgage debt ).

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.

Higher public debt slowed private debt: Poloz .
OTTAWA - The federal government's steps to amass more public debt have helped Canadians avoid an even faster build-up of their personal debt loads, even though such household burdens have still managed to hit historic highs, the Bank of Canada governor said Tuesday. Stephen Poloz said Ottawa's spending in the last couple of years on programs such as enhanced child benefits and infrastructure, have contributed to economic growth. The extra public investments have also helped push interest rates up to a level higher than they would have been without the government stimulus, he said.

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