Home Builder Canada Readers survey
newsletter
NP_lineHome Builder Magazine New Products Online
NP_line
Computers, Educational
&Technology

NP_line
Electrical & Mechanical
NP_line
Exteriors
NP_line
Finishes & Surfaces
NP_line
Kitchens & Baths
NP_line
Landscape & Design
NP_line
Speciality Products
NP_line
Structural
NP_line
Tools & Equipment
NP_line
Windows & Doors
NP_line
New Products home
NP_line



External Links: Associations & Governments. Builders & Renovators . Manufacturers & Suppliers

Home . About Us . Subscribe . Advertise . Editorial Outline . Contact Us . Current Issue . Back Issues . Jon Eakes



© Copyright - Work-4 Projects Ltd.

Majority of homeowners “nearly debt free”

November 23, 2017

Sherry Cooper of Dominion Lending Centre: 40 per cent of homeowners have no mortgage.

As the federal government frets about homeowners carrying excessive debt and is introducing a second-round stress test for those applying for mortgages, mortgage professionals say the vast number of Canadians manage their debt responsibly.
In fact, it could be argued the typical mortgage holder is more financially astute than the federal government, which has accumulated a $645 billion debt that is rising by $57 million per day, according to the Canadian Taxpayers Association.
Sherry Cooper, chief economist for Dominion Lending Centres, said the majority of Canadians manage their finances in a responsible manner.
“Roughly 40 per cent of homeowners are mortgage-free and one-third of all households are totally debt-free. Another 25 per cent of households have less than $25,000 in debt, so 58 per cent of Canadian households are nearly debt free,” Cooper said.
She added that mortgage delinquency rates are extremely low. “In addition, two-thirds of outstanding mortgages are fixed rate, which mitigates the risk of rising mortgage rates over the near term,” Cooper said.
As of January 1, the new stress test will require all homebuyers, regardless of the size of the down payment, to qualify at a mortgage two per cent higher than what is really available.

“This will likely influence some homebuyers to purchase before the stress test comes into effect, especially in Canada's pricier housing markets,” said Andrew Peck, president of the Canadian Real Estate Association.

 

 

homeBUILDERcanada.com | Home BUILDER Magazine | Canada's #1 Information Source for Residential Home Builders and Professional Renovators

HB house ad sub
Home Builder Magazine Ask Jon Eakes
Home Builder current issue