Wednesday, December 29, 2010
Canada Mortgage Debt Load
There is a lot of media attention towards the high level of debt Canadians have currently and the increase in mortgage volume over the past years. I do think this is overblown by the media and the Canadian government. We have seen major increases in home prices over the last decade across Canada. Vancouver and Toronto have increased by some 240% from 2000-2010. So with to days house prices, more ownership across Canada it stands to reason we would have more debt load. What i do not understand is the thinking that we should be like our parents generation over 60 plus. They were in the same spot 40 years ago buying homes and earning very little income.They had a hard time saving and worked very hard for everything that they have today. Today's society is a payment plan, not that is is right, it just is. The government should not be telling me or anyone how much money i should spend and on what. We have great safeguards in place right now by the banks. These high standards have led us to the great stability that we are all enjoying now. In my op ion we should be focusing on how to pay your mortgage off faster, set up a savings plan, rrsp plan. This would help more Canadians to get better educated to make the best choices on how to spend the money that we all work very hard for. Financial education for all Canadians is the key, not more rules.