Toronto, Canada, March 14, 2016 – Canadalend.com , the leading low-cost, private mortgage solution provider in the country, weighs in on a survey showing that nearly half of Canadians are within $200 a month of being unable to pay their bills. Canadalend.com also explains why it’s an excellent time for property owners to access the equity in their home sand consolidate debts.
According to a recent poll, roughly half of Canadians are just $200 per month away from being unable to pay their bills and make debt payments. The survey also found that one third of people are already unable to cover their bills and debt repayments. Further, 31% of those surveyed said that even the slightest increase in interest rates could bring them closer to bankruptcy. (Source: “Nearly half of Canadians are within $200 a month of being unable to pay their bills, poll finds,” Financial Post web site, February 16, 2016; http://business.financialpost.com/news/economy/nearly-half-canadians-within-200-a-month-of-being-unable-to-pay-bills-poll-finds.)
“Canadian households are being strained. In fact, Canadian household debt is at record levels with the debt-to-income ratio currently sitting at 171%. That means that for every $1.00 in disposable income, households have a debt obligation of $1.71,” says Bob Aggarwal, president of Canadalend.com. “The ratio is expected to rise to 174% later this year.” (Source: Isfeld, G., “Canadians’ household debt climbs to highest in G7 in world-beating borrowing spree,” Financial Times web site, January 19, 2016; http://business.financialpost.com/investing/outlook-2016/canadians-household-debt-highest-in-g7-with-crunch-on-brink-of-historic-levels-pbo-warns.)
Aggarwal explains that the one bright spot for indebted homeowners is the Bank of Canada’s decision to keep its key lending rate at a historically low level of 0.5%. The central bank also lowered its growth estimates for 2015 and 2016 as low oil and energy prices continue to hurt the Canadian economy. (Source: “Bank of Canada maintains overnight rate target at 1/2 per cent,” Bank of Canada web site, January 20, 2016; http://www.bankofcanada.ca/2016/01/fad-press-release-2016-01-20/.)
“The downgraded growth in the Canadian economy is actually a positive for homeowners stretched with debt. That’s because the Bank of Canada will continue to keep interest rates at historic lows,” Aggarwal adds. “As a result, it continues to be a great time for homeowners to take advantage of the equity they have built up in their homes and consolidate their debt. Best of all, the interest rates associated with adebt consolidation are significantly lower than bank credit cards.”
Canadalend.com is one of the largest, most trusted private mortgage brokers in Canada, with skilled independent, licensed professionals helping Canadians coast to coast. Canadalend.com provides its clients with residential and commercial mortgages, home equity credit , debt consolidation, and assistance addressing financing concerns. More information can be found at www.Canadalend.com .