My Debt to Income Ratio is Higher than 153%: But That’s Okay!
Debt Repayment / Personal Finance

My Debt to Income Ratio is Higher than 153%: But That’s Okay!

Experts will tell you your debt-to-income ratio is one of the best ways to gauge your financial position. The media often quotes the Bank of Canada saying Canadians are at dangerously high levels of debt at 153 per cent. But what does that mean? I’ve spent dinner parties arguing how to properly calculate debt to income ratios and how much is too much. There are many schools of thought on how to asses your financial health. Here are a few. Continue reading »

The Cheap Money Party Won’t Last: Canadians Need to get Real About their Debt
Economic News / Mortgage News / Mortgages

The Cheap Money Party Won’t Last: Canadians Need to get Real About their Debt

Bank of Canada Governor Mark Carney is painting an increasingly bleak future for the Canadian housing market. Although soft in his chosen words his message at a recent speech to the Vancouver Board of Trade was clear, when rates go up, we are in trouble. Carney highlighted again that the single biggest investment most Canadians make is their home. It represents almost 40 percent of the average family’s total assets. The big problem, many Canadians are living in homes they won’t be able to afford once interest rates start to rise. Continue reading »

Discussing Higher Canadian Personal Debt on CTV News
Economic News / Mortgage News / Mortgages / RSM News

Discussing Higher Canadian Personal Debt on CTV News

The latest report on rising household debt that was released yesterday outlined that the average Canadian family owed over $100,000 in debt, at the end of 2010. In addition, the debt to income ratio was a record 150%. To put this in perspective, this means that for every $1,000 a household earns in after tax … Continue reading »

Canadian’s Personal Debt to Income Ratio Reviewed
Debt Repayment / Economic News / Personal Finance / Personal Finance News

Canadian’s Personal Debt to Income Ratio Reviewed

There was an interesting article in the Globe and Mail earlier in the week as Rob Carrick spoke with CIBC’s Chief Economist Benjamin Tal about the recent focus on Canadian debt levels and how the major indicator, the debt to income ratio, may not be the best tool of measurement. Mr. Tal was quoted as … Continue reading »