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Canadian homeowners have more of a challenge managing debt as summer approaches. There are many different types of debt that an individual can have. The most common types of debt include pay day loans, auto loans, tax debt, student loans, credit card debt, and mortgages.

Mortgage rates have been a hot topic among Canadian homeowners ever since Canada introduced its new federal mortgages rules. The new rules were introduced October 17th, 2016, and basically prevent Canadians from taking on mortgages they can’t afford.

For more details on the new mortgage rules you can read our blog, “Canada’s New Federal Mortgages Rules.”

Canadian Homeowners statistics

Manulife Bank recently conducted a survey based on Canadian homeowners paying off their mortgages. The survey was conducted online between February 1st and February 14th, 2017. 2,098 Canadian homeowners between the ages of 20 and 69 yrs. old participated in the survey. Each individual also had an annual income of $50,000 or higher.

The results of the survey showed that 75 percent of Canadian homeowners would have difficulty paying off their mortgage if they faced a 10% increase on their payments. Also, 45 percent of millennial Canadian homeowners (ages 20 to 35) would have difficulty making payments if they were to become unemployed.

Canadian Homeowners Reality

Canada’s mortgage rates are said to be at an all time low. A 1 percent increase on a mortgage rate would be the equivalent to a 10 percent increase on the mortgage payment. This means that the 75% of Canadian home owners that found it difficult to pay off a 10% increase on their mortgage, could face that very situation.

There are many different methods to manage debt, yet, debt remains to be a major issue amongst Canadians. The longer this issue is addressed, the worse the situation becomes. It is extremely difficult to manage debt by yourself, you should always seek professional help.

We are Licensed Insolvency Trustees with the knowledge and experience in addressing the financial issues mentioned above. Our expertise can address any financial challenges you may face, including managing credit and most importantly finding a way to reduce or eliminate overwhelming debt.

If you need help, contact us by emailing info@dodicklandau.ca or call us at 416 736 4357 (HELP). You can also book a free consultation with no obligations by filling out the contact form on our home page.

Make an appointment today for a custom-tailored solution specific to your situation. We look forward to assisting you.