Toronto, Canada (PRWEB), October 2, 2014 – Canadalend.com, the leading low-cost, private mortgage solution provider in Canada, is weighing in on recent economic data showing that Canadians are among the world’s richest citizens but, at the same time, some of the most in debt. Canadalend.com is also commenting on how debt consolidation can make debt more manageable.
Statistics Canada announced recently that household credit market debt (consumer credit, mortgages, and other loans) rose 1.3% in the second quarter, compared to the first quarter; significantly outpacing the 0.6% growth in disposable income. The ratio of credit debt to disposable income, a closely watched measure of household debt burden, increased to 163.6%. The second quarter number is just slightly below the record 164.1% mark established last year. When Statistics Canada first began to track the data in 1990, the ratio stood at 85.3%. (Source: Statistics Canada, “National balance sheet and financial flow accounts, second quarter 2014,” The Daily , September 12, 2014; www.statcan.gc.ca/daily-quotidien/140912/dq140912a-eng.htm.)
“What this means is that Canadians owe approximately $1.64 on every dollar of disposable income,” says Bob Aggarwal, president of Canadalend.com. “But because of the red-hot housing market, Canadians have never—at least on paper—been richer. During the second quarter, household net work climbed 2.3% to a record $8.1 trillion, or $227,000 per person.”
Aggarwal explains that because of the household imbalances, it is unlikely the Bank of Canada will shock the economy by raising interest rates in the near term. In fact, because of the bank’s neutral policy bias, a rate cut is just as likely as a rate hike. Most analysts don’t think the Bank of Canada will hike interest rates until the U.S. Federal Reserve begins to do so sometime in 2015.
In spite of the imbalance between household net worth and higher personal debt levels, more Canadians are choosing to file a consumer proposal over filing for bankruptcy. In 2013, 42% of consumer insolvencies were proposals; up from 40% in 2012, and 37% in 2011.
“A consumer proposal can be a much better option if you have assets but are struggling with overwhelming debt levels,” Aggarwal adds. “Whether it’s because of a lost job, unexpected expenses, or just the cost of living, the experts at Canadalend.com can help those overcome the day-to-day financial stresses through debt consolidation.”
Debt consolidation is about taking out an equity home mortgage loan. Because Canadalend.com agents are licensed and independent, they draw from hundreds of different lenders to get clients the best rates possible.
“Refinancing to consolidate debt is a great way to save money. Through debt consolidation, homeowners can combine all debt into one easy-to-manage monthly payment. This helps significantly lower the monthly interest rate,” Aggarwal concludes. “Homeowners interested in seeing if they qualify for a debt consolidation or refinancing should contact their local Canadalend.com mortgage specialist.”
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 assists its clients with residential and commercial mortgages, home equity credit, debt consolidation, and financing concerns. To learn more about the company, visit the web site at www.Canadalend.com .