Toronto, Canada, June 23, 2016 – Canadalend.com, the leading low-cost, private mortgage solution provider in the country, is reacting to first-quarter Canadian household debt levels and weighing in on the benefits of consolidating debt amid low interest rates.
According to Statistics Canada, the debt-to-disposable-income ratio for the average Canadian is 165%. For every $1.00 of disposable income, the average Canadian is burdened with $1.65 in debt. Since 2000, Canada has seen the largest increase in household debt relative to income of any major developed country. (Source:Statistics Canada, “National balance sheet and financial flow accounts, first quarter 2016,” June 14, 2016; http://www.statcan.gc.ca/daily-quotidien/160614/dq160614a-eng.htm?HPA.)
“Separately, data shows that Canadian home prices have continued to climb. In May, home prices increased 1.8%; the largest gain for the month since 2008. For the first time since June 2013, resale housing prices were up in all 11 metropolitan markets; the strongest growth was seen in Vancouver, Hamilton, Victoria, and Montreal,” says Bob Aggarwal, president of Canadalend.com. “In Toronto, it was the fourth consecutive month where prices reached a new record.” (Source: House Price Index, “Teranet – National Bank National Composite House Price Index,” June 14, 2016; http://www.housepriceindex.ca/.)
Aggarwal explains that Canadians can become overwhelmed by debt for many reasons. Whether it’s because of a lost lob or unexpected expenses, growing debt can put undue stress on daily finances. This debt burden could become even more difficult to manage should interest rates begin to climb.
“A great way to deal with seemingly unmanageable debt loads is through debt consolidation. By taking out one large loan, against their home, a homeowner can consolidate all of the other debt into one convenient payment.” Aggarwal adds. “One of the biggest benefits of debt consolidation is the lower interest rate. This helps someone get out of debt faster. Debt consolidation also helps the client protect their credit rating. With interest rates near record-low levels, it’s an ideal time to take advantage of the equity built up in the home.”
Canadalend.com is one of the largest private mortgage brokers in Canada, providing its clients with residential and commercial mortgages, home equity credit, and debt consolidation, and addressing financing concerns.