Tridac Mortgages

Leading the headlines is a warning from the Bank Of Canada regarding the levels of Canadian household debt. According to the report the average debt per household, including mortgage and credit card debt, hit $96,100, as the debt-to-income ratio climbed to a record 146 per cent. This means that for every dollar earned, $1.46 is owed to creditors. This news comes on the heels of recent rule changes  to the mortgage market to control maximum loan amounts and debt to service ratios. Now, there's talk of new rules again. How about introducing rules for credit card companies limiting how much damaging consumer credit they can offer to borrowers who display signs of financial distress?

Now in a hypothetical situation let's suppose you received $5,000 to either A) pay down your mortgage or B) invest and contribute to your RRSP. What would you do? You might think that paying down your mortgage is the obvious answer, right? After all, we are carrying excessive debt loads. Well, it's not that straight forward and reading sound bytes from the media can make your head spin! It's an important to remember there's a difference between consumer debt and mortgage debt and every effort should be made to pay off consumer debt. To explore these options it's important to have a good mortgage broker working with you.