Canadian mortgages top $1 trillion
Filed Under Main Content · Tagged: Annual Report, Canadian Mortgage, Canadian Mortgages, Canadians, Extra Cash, Home Purchases, Low Interest Rates, Mortgage Debt, Mortgage Holders, Mortgage Professionals, Rates Mortgage, Trillion
The Star- A new report says Canadian mortgage debt has spiked to over $1 trillion, largely as a result of high home prices and low interest rates.
The Canadian Association of Mortgage Professionals says in its annual report that the value of outstanding mortgages is now 7.6 per cent higher than it was last year.
The report says higher prices have forced many Canadians to borrow heavily to finance home purchases.
Meanwhile, low interest rates have spurred others to borrow against their homes. The report found 18 per cent of mortgage holders have taken equity out of their homes to free up extra cash…
Canadian mortgages top $1 trillion – Moneyville.ca
Canadians handling mortgage debt well
Filed Under Main Content · Tagged: Accredited Mortgage, Annual Report, Canada, Canadian Homeowners, Canadian Mortgage, Canadians, Extra 300, Mortgage Debt, Mortgage Professionals, Residential Mortgages, Solvency, Trillion
Financial Post- Canadian homeowners are handling their mortgage debt so well they could handle paying more each month, according to a report released Monday by the Canadian Association of Accredited Mortgage Professionals.
Its sixth annual report on residential mortgages found the vast majority of mortgage-holding Canadians (84%) could afford an extra $300 or more a monthly in payments.
This certainly bodes well for Canadian solvency levels, as the total level of outstanding residential mortgages in Canada crossed the $1-trillion mark in August, a 7.6% increase from last year…
Canadians handling mortgage debt well
Wealth effect is anything but
Filed Under Main Content · Tagged: Assets, Bank Of Canada, Consecutive Quarter, Economist, First Quarter, Household, Net Worth, Ottawa Citizen, Recession, Royal Bank Of Canada, Statistics Canada, Stock Portfolios, Trillion, Wealth Effect
Ottawa Citizen- There is something about our stock portfolios and homes being worth more that makes us want to spend.
“It’s called the wealth effect. If you feel you have more, you are more willing to spend more,” says David Onyett-Jeffries, an economist with Royal Bank of Canada.
“When people see their house value increase, they are more willing to spend because there is less requirement to save. They view these assets as being marketable and gaining value.”
Statistics Canada said this week that household net worth increased by 1.3% in the first quarter to $6-trillion — a fourth consecutive quarter of improving wealth. Household net worth has recovered 96% of what was lost during the recession…
Household worth rebounds after recession
Filed Under Main Content · Tagged: Asset Prices, Assets, Borrowings, Canadians, Decline, Economic Downturn, Economics Research, Economist, Household Debt, Jeffries, Liabilities, Low Interest Rates, Net Worth, Rbc, Rebounds, Recession, Residential Real Estate, Rising Stocks, Statistics Canada, Trillion
Times Colonist- Rising stocks and home prices have helped restore almost all of the value Canadians lost in household net worth during the economic downturn.
Household net worth rose 1.3%, or by $74-billion, to $6-trillion, as the growth in the value of assets, particularly equities and residential real estate, exceeded the increase in liabilities, Statistics Canada reported Monday.
“This marks the fourth consecutive quarterly improvement in household net worth and reflects a 96 per cent recovery off the net worth lost during the recent economic downturn,” David Onyett-Jeffries, economist at RBC Economics Research, wrote in an analysis.
“The increase of household net worth continues to repair the cumulative $552-billion decline.”
Household debt has also risen as low interest rates have encouraged Canadians to increase borrowings, but that has led to strengthening in demand and asset prices, particularly housing, said Mr. Onyett-Jeffries…
