• Canadians Drowning In DebtCanadians Drowning In Debt

    Statistics Canada has released their finding for the 4th quarter of 2018 and it reflects Canadians Drowning In Debt. On average, the growth of debt for Canadians outpaced their grown in income.

    In the third quarter of 2018, the proportion of debt to disposable income was at 178.3%. In the fourth quarter that number rose to 178.5%. That means that for every dollar of disposable household income, Canadians had $1.79 of credit market debt.

    Credit market debt includes credit cards, mortgages and other loans.

    Household Debt Service Ratio

    The total mortgage debt for all of Canada reached $1.44 trillion last year, while consumer credit and non-mortgage loans raches $769.4 billion.

    When qualifying for a mortgage, the lender will check the borrower’s debt service ratios: GDS (gross debt service) and TDS (total debt service). The GDS compares your general housing costs (mortgage, property taxes, heat) to your gross yearly income. The TDS adds all of your other debt (credit cards, car loans etc.) to your housing costs and compares that to your gross income.

    The household debt service ratio on the other hand, looks at only your payments on your non-mortgage loans. This climbed from 14.7% in the 3rd quarter to 14.9%.

    We see Canadians Drowning in Debt in our office every day and it concerns us that they are giving interest away to the banks instead of investing in their own retirement. We can help you to budget, consolidate and reduce your debt.

    Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

    If you would like to apply for a mortgage online, please follow this link.

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