December Debt Worries

December Debt Worries

Just in time for the holidays… two debt reports are out with some not-so-cheery news for Canada’s economy. Not only are we carrying way too much consumer and mortgage debt, but our biggest assets (namely our homes) aren’t worth as much as we think they are.

What’s to make of this economic doom and gloom? Read on for our Mortgage Debt Spotlight and see how you could be affected as a consumer.

Canadian Housing Market Could Be 30% Overvalued: Bank of Canada

Some dire news from Canada’s central bank – national housing prices could be overvalued between 10 and 30 per cent. The Bank of Canada warns this, combined with Canada’s high debt levels, could lead to “severe” price corrections and economic fallout – but the chances of that occurring are low.

Here’s what you should know about the BoC’s latest report.

Read Penelope’s Blog | Canadian Housing Market Could Be 30% Overvalued

Yikes! Canadians Owe $1.5 Trillion

The latest national debt numbers are in… and they ain’t pretty. Credit bureau Equifax reveals Canadian consumers owe a total of $1.5 trillion! Even worse – that breaks down to the average Canadian owing $20,891 – not including their mortgages.

Read Sean’s Blog | Yikes! Canadians Owe $1.5 Trillion

Is Rent-to-Own Housing Ever a Good Idea?

The Rent-to-Own model is a popular way for those with sub-par credit to become homeowners; In exchange for an up-front deposit, the buyer can rent the home for a set term while simultaneously paying into their down payment fund.

Seem too good to be true? It can be – these mortgages often cost buyers far more than traditional borrowing – and sometimes arrangements can fall through altogether with little financial recourse for the buyer.

Read Gordon’s Blog: Is Rent-to-Own Housing Ever a Good Idea?

In Personal Finance: Will MasterCard Debit Come to Canada?

Could MasterCard Debit in Canada be a future possibility? The credit card provider has shared plans it could enter the Canadian market. How would the service work – and would it fit in with recent changes to credit card interchange fees?

Read Jaclyn’s Blog | Will MasterCard Debit Come to Canada?

In Mortgages: Purchase and Sale Agreements: What Buyers Need to Know

A recent RECO survey finds many home buyers find purchase and sale agreements to be confusing – yet they’re a vital part of the home buying process. Here’s what you need to know about understanding these contracts – and how to make them work in your favour.

Read Allan’s Blog | Purchase and Sale Agreements

#RSMWIN

On for a second week!

Enter to WIN $25 by answering this week’s question!

Do you have a post-holiday debt repayment plan in place?

Tweet your answer to @RateSupermarket with #RSMWIN!

Related Topics

Credit Card Debt / Debt Repayment / Economic News / Mortgage News / Mortgages

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