Low rates of Canadians and the rise of the real estate market has made Canadians mostly relying on debts due to falling incomes. To keep up with inflation, Canadians indulge in debt with family and friends as well as the banks, though, this behaviour is bad for a person’s finances and Canadians find it fitting.
Many Canadian consumers find borrowing during the low interest rate environment working for them because they just need to keep their monthly payments. According to an Abacus data poll for the Maclean’s for the Canadian Project, Canadian citizens are getting more acquitted with debts and are full of debts mostly from friends and family.
The poll showed that only 9 per cent of those 75 years and older are still in debts with friends and family. It also showed that couples with older children example 11 and more are less likely to borrow money than those with children less than 10 making a percentage of 28 while couples with children less than 10 years top the poll with a percentage of 39.
“My friends in Toronto are buying condos for $600,000 and taking on huge mortgage debts without thinking twice” said Matt Zagaris; being antagonist to debts, he sees the problem in Canada as a major one because he sees being in debts as the only way some Canadians get the ticket to afford big items and he sees it as a cause for worry.
The Canadian Bankers Association also made a release of Canadians state of debt, saying 5 per cent of Canadians debts are as a result of credit card debts, 18 per cent are from lines of credit while 69 per cent of household debts are as a result of resident mortgage though this number is high, nation mortgage in arrears (going for more than 3 consecutive months without a payment made) is still very low.
While mortgage increased their mortgage payments by 16 per cent in 2016, 18 percent made additional lump sum payments last year but also a majority sum of 58% of Canadians pay the balance of their credit cards each month avoiding to pay interest payments and credit debts together, but according to the Canadians Mortgage professionals report, 21 per cent of Canadians who purchases houses since 1990 haven’t still completed payments for more than 27 years.