Skip to content
aDiamondMortgage
Menu
  • Welcome
  • Mortgage
    • Purchase
    • Refinance
    • Equity
    • Reverse
    • Commercial & Alternative
  • Resource
  • About
    • Terms Of Use
    • Privacy Policy
    • Cookie Policy (CA)
  • Contact
  • Realtors
  • Application
Menu

Debt repayments make up more than 30% of lower-income households’ spending

Posted on 2021-01-06

Debt repayments make up more than 30% of lower-income households

As much as half of Canada’s lower-earning households are spending around 31% of their incomes on debt repayments, according to a new survey by charity group Prosper Canada.

In its recently released report, Prosper Canada also said that the debt-repayment ratio among moderate-income households is at an average of 18%, although it warned that “as this average is for all households in these income levels, the rate among indebted low- and moderate-income households is likely substantially higher.”

And these levels might surge even higher, the report cautioned.

“We can reasonably expect debt service ratios to rise in the coming months as many households continue to struggle with reduced earnings and debt payment deferral plans offered by financial institutions end,” Prosper Canada said.

This will likely accompany a continual increase in consumer credit, driven by longer terms and larger principal amounts in “installment loans from high-cost credit lenders,” which the report said is now the fastest growing form of consumer credit in Canada.

However, “while mortgages are a major factor in national aggregate household debt levels, they are not the primary driver of debt for low- and moderate-income households,” Prosper Canada said.

These trends mirror the Bank of Canada’s warnings of high household debt levels potentially derailing the nation’s economic recovery.

“Rising insolvency levels are expected as emergency debt deferral measures wind down and households whose incomes have still not recovered are confronted with higher debt payments,” the bank said in a statement.

by Ephraim Vecina 06 Jan 2021

  • https://www.mortgagebrokernews.ca/news/bruised-credit/debt-repayments-make-up-more-than-30-of-lowerincome-households-spending-336599.aspx?utm_source=GA&utm_medium=20210106&utm_campaign=MBNW-Newsletter-20200106&utm_content=CAB225E9-A56E-4453-BA7A-30CBD695B619&tu=CAB225E9-A56E-4453-BA7A-30CBD695B619

Complimentary Hotel Stays Are here!!!

Would you like a complimentary hotel stay? Some locations are:

  • Bali, Indonesia – Hotel Rooms 8 days and 7 nights
  • Bangkok, Thailand – Hotel Rooms 5 days and 4 nights
  • Cabo San Lucas, Mexico – Hotel Rooms 5 days and 4 nights
  • Cancun, Mexico – Hotel Rooms 6 days and 5 nights
  • Dubai, United Arab Emirates – Hotel Rooms 5 days and 4 nights
  • Las Vegas, NV – Hotel Rooms 4 days and 3 nights
  • Phuket, Thailand – Hotel Rooms 8 days and 7 nights
  • Puerto Vallarta, Mexico – Hotel Rooms 6 days and 5 nights

We have teamed up with GiveAwayVaca.com to offer our clients and our realtor clients complimentary hotel stays around the globe. Simply complete your mortgage of any type with us and choose your location.

Please Note:
– Clients/users must pay taxes ~$35.00/night.
– All information may change without notice.

Mortgages-101

Selecting a mortgage is one of the biggest – and most stressful – financial decision made by many Canadians. But a clear understanding of a few basic terms and concepts can help allay some the anxiety. Here’s a primer on the basics of mortgages, along with insights into the current market.

  • more...MORTGAGES-101

Archives

Tags

Affordable Housing Alberta Banks BC Black Homeownership BOC Calgary Canada Canadian home prices CMHC Commercial Condo COVID COVID-19 Credit Credit & Debit Debt Default Deferrals Economist Economy Equifax Government Homebuying Homeownership House Housing Canada Inclusive Interest Rates Investment Mortgage Mortgage Tips OSFI Pre-Approval Price Private. Alternative Purchase Purchase & Down Payment Real Estate Refinance Revenue Taxpayers Toronto Underwriters Vancouver

Archives

  • October 2023
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020

Sections

  • Mortgage
  • Economy
  • Banks
  • BOC
  • Government
  • Underwriters
  • Commercial
  • Revenue
  • Investment
  • Purchase & Down Payment
  • Credit & Debt
  • Real Estate
  • Inclusive
  • Mortgage Tips
  • All News Topics
  • To Top

Tools

  • Terms of Use
  • Privacy Policy
  • Cookie Policy

About Us

  • Contact Us
  • Feedback

Follow Us

  • Facebook
  • Twitter
  • Instagram
©2023 aDiamondMortgage | Design: Newspaperly WordPress Theme
Manage Cookie Consent
We use cookies to optimize our website and our service.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}