Table of Contents show
Joining Jon Erlichman on BNN, Loans Canada CEO Scott Satov delves into strategies Canadians can use to navigate their debt and maintain financial stability during the holiday season.
In the face of a challenging year marked by inflation, high interest rates, and the rising cost of living, Canadians demonstrated tremendous resilience. As we enter 2024, Satov outlines key factors that Canadians grappling with mortgage renewals and consumer debt should keep in mind.
Notably, Satov suggests that Canadians gain a clear understanding of their financial profile and assess their standing as they approach the new year.
Here are some key takeaways to help you prepare :
Where To Start With Debt Management?
- Understand your financial position
- Speak with a debt or credit professional
- Speak to your mortgage provider about your options
- When are you up for renewal?
- How much is your monthly payment going to increase?
- Create a budget that allows for a higher mortgage payment
Consider Your Debt Management Options
- Being informed is the most important step
- Credit card balance transfers
- Debt consolidation loans
- Speak with a Licensed Insolvency Trustee
Beware Of Buy Now Pay Later
- Buy Now Pay Later (BNPL) is a form of credit that is readily available at most online check-outs.
- While convenient, BNPL services can influence overspending and excessive borrowing; resulting in debt.
- Missed payments may result in a negative impact on your credit.
- Just because it’s easy and convenient, doesn’t make it the right choice for everyone.
Canadian Household Debt In 2023
- Household debt-to-income ratio – On average, Canadians have a debt load of 185%. Meaning for every dollar earned, they owe $1.85.
- Consumer non-mortgage debt – The average non-mortgage debt per credit-active consumer is $21,131.
- Average consumer debt with a mortgage (Globe & Mail)
- $644,000 (ages 30-39)
- $566,000 (ages 50-59)
- $436,000 (ages 60-69)
- Average mortgage debt per consumer (TransUnion)
- $333,788 (Q2 2022)
- $351,692 (Q2 2023)
- National Average House Price (CREA)
- Q4 2023 – $656,625 (1.8% year over year change)
- National Average Value Of New Mortgages (CMHC)
- $314,864 (Q2 2023) vs. $256,616 (Q2 2019)
- Average mortgage balance – $349,178 (TransUnion)
- National Average On Mortgage Balance Increase – 5.36% (TransUnion)
