Wednesday, February 9, 2011

Dire warnings sinking in for home buyers

Perhaps thanks to Mark Carney’s frequent prophecies of financial doom, more Canadians are leaning toward paying off their mortgages sooner rather than later.

A new BMO poll suggests more than half of us (56 per cent) think a shorter amortization period is a good thing, with those aged 35 to 44 the most enthusiastic about throwing their mortgage-burning parties ahead of schedule (77 per cent).

CLICK HERE for the entire story from The Globe and Mail


Thursday, February 3, 2011

Don’t let devotion to RRSPs distract from paying off debt

Canadians are another RRSP season older – and deeper in debt.

In 2010 we owed $1.48 for every dollar we earned, up from $1.45 the year before. According to the Ottawa-based Vanier Institute of the Family we’ve climbed high on the debt mountain: In 1990, the figure was 90 cents.

What’s worse, these figures tell only part of the debt story because they include mortgages, or what experts call “good debt.” A recent survey by the credit bureau TransUnion showed that roughly 25 million Canadians with debt owe an average of $25,000 each – not including mortgages. That kind of consumer debt can attract interest rates nearing 30 per cent for retail credit cards.

CLICK HERE to read the entire article at The Globe & Mail