Canadians continue to hold high debt compared to disposable income

Household net worth rose 2.7% to $11,114 billion in the first quarter, according to StatsCan

Canadians continue to hold high debt compared to disposable incomeThe Canadian household credit market debt as a proportion of household disposable income remained at 177.6 per cent in the first quarter, as debt and income grew at similar rates. In other words, there was $1.78 in debt for every $1 of household disposable income, according to data released on Thursday by Statistics Canada. The…

Big dreams come with tiny homes

Brian Hawkins of The Tiny House Movement talks about the significant advantages in store for people who downsize

Big dreams come with tiny homesBrian Hawkins is owner of The Tiny House Movement. What is the Tiny House Movement? Hawkins: The Tiny House Movement has been around for more than a decade, but it's really taken hold the last three years. It's become much more mainstream with the help of TV shows on HGTV, Netflix and the DIY network.…

Canadians falling deeper into debt

Mortgage loans accounted for nearly two-thirds of total debt, followed by home equity lines of credit, credit cards and auto loans: CMHC

Canadians falling deeper into debtThe level of indebtedness of Canadian households rose faster than income in 2018, according to a new report by Canada Mortgage and Housing Corp. “As a result, the debt-to-income ratio continued to increase over the course of the year, reaching 178.5 per cent in the fourth quarter of 2018, a record high. According to Equifax…

The three steps to get in better financial shape

Kelley Keehn of FP Canada talks about why we need to get involved in our financial health as much as we do our physical health

The three steps to get in better financial shapeKelley Keehn is a personal finance educator and FP Canada consumer advocate. Tell me about your background and what you do now? Keehn: I was in the financial industry for over a decade. During that time, I found that whether you have a billion in the bank or a million in the hole, everyone has money…

Millennials have higher household incomes than Gen-Xers

Unfortunately, they also carry considerably more mortgage debt

Millennials have higher household incomes than Gen-XersDo you ever wonder why millennials are the demographic that everyone talks about today? It’s all about the money. Statistics Canada published some interesting data on Thursday showing that millennials had higher incomes and median wealth than young Gen-Xers at the same age, but also considerably more mortgage debt. “The study finds that millennials –…

Protecting yourself, and your assets, in case of incapacity

Don't underestimate the importance of having a plan in place for when the inevitable happens

Protecting yourself, and your assets, in case of incapacityEvery day, we make financial and health-related decisions and often don’t give these decisions a second thought. But how – and by whom – would these decisions be made if we’re suddenly incapable of making them for ourselves? You can’t underestimate the importance of having a plan in place for when the inevitable happens. And it…

Canadian senior families’ debt rising: StatsCan

Strong housing market responsible for both higher mortgage debt and an increase in the value of homes

Canadian senior families’ debt rising: StatsCanThe proportion of senior families carrying debt in Canada rose from 27 per cent in 1999 to 42 per cent in 2016, according to a report released on Wednesday by Statistics Canada. However, the federal agency also said the median net worth of senior families with debt – which corresponds to the total value of…

Only constant vigilance will stem a rising tide of scammers

If it sounds too good or too awful to be true, hang up or delete. In the very remote case that it’s legitimate, someone will get back to you

Only constant vigilance will stem a rising tide of scammersI’m writing this on April Fool’s Day, the day we set aside to play tricks on one another. Unfortunately, many people don’t limit their tricks to one day a year – they go way beyond harmless pranks. These scammers are usually very clever people who would rather trick the rest of us out of our…

Canadians’ level of debt rising as proportion of household income

Borrowing edged up in the fourth quarter of 2018 to $21.2 billion: StatsCan

Canadians’ level of debt rising as proportion of household incomeThe level of debt Canadians carry continues to increase. A report released on Thursday by Statistics Canada said “household credit market debt as a proportion of household disposable income increased to 178.5 per cent in the fourth quarter (of 2018), with growth in debt slightly outpacing income growth.” “In other words, there was $1.79 in…

One in five Canadians need to liquidate assets to pay debt

New survey says the need to liquidate is significantly higher among males and those under 55

One in five Canadians need to liquidate assets to pay debtThe level of personal debt in Canada has been an alarming trend in recent years. A survey released on Wednesday says one-in-five Canadians with debt say they will need to liquidate assets – such as cash in their RRSPs, get a second mortgage, sell a vehicle –  to help pay off or pay down their…

Canada’s tax rates significantly higher than U.S.: Fraser Institute

Report says taxes discourage people from engaging in productive economic activity, hindering economic growth

Canada’s tax rates significantly higher than U.S.: Fraser InstituteA new report by Canadian public policy think-tank the Fraser Institute says Canadian workers across the income spectrum pay significantly higher personal income taxes than their American counterparts. “Income taxes are a major attractant — or deterrent —for entrepreneurs, businesses and workers looking to start a business, expand operations or relocate, and at virtually every…

Women control about $2.2 trillion in Canadian assets: CIBC

By 2028, women will control just under $3.8 trillion or more than one-third of total financial assets

Women control about $2.2 trillion in Canadian assets: CIBCWomen in Canada currently control about $2.2 trillion of Canadian assets, a rising amount of wealth and increasing influence on the overall economy, says a new report released on Monday by CIBC Capital Markets. “More needs to be done in order to fully utilize women's economic might, but the direction is clear,” said the report,…

3 first steps to cleaning up your finances

A financial housecleaning is at least as important as getting rid of old newspaper and kitchen crumbs

3 first steps to cleaning up your financesDo you have a hard time keeping track of bank accounts and bills? It may be time to clean up your finances. If you're like me, you clean the pantry and toss out old newspapers and flyers every week or so, but you may go several months without de-cluttering your finances. Our priorities may be…

Why the mortgage stress test makes perfect sense

What’s wrong with protecting people from financial default? What's wrong with cooling housing prices?

Why the mortgage stress test makes perfect senseThis is a true story from just before the recession earlier this century. It helps illustrate why Canada's mortgage stress test makes so much sense. A newly-married and very well-heeled couple wanted two homes – one in California and one in British Columbia. Getting financing for the California home was no problem. All the funding…

Why Canadians are suffering a bankruptcy spike

Interest rate hikes, housing costs, rising taxes and stagnating wages are all crucial. We need to address these problems

Why Canadians are suffering a bankruptcy spikeWhat can't happen won't happen. If incomes are stagnant while taxes, prices and interest rates rise, people will fail to pay their debts – as is the case for 120,000 Canadians every year. The long-term buildup of urban house prices had already made people financially vulnerable and consumer insolvencies in Canada increased by 9.2 per…
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