Canadian Housing & Rising Debt

House

Increasing House Prices Continue

From coast to coast in Canada, over the past decade, housing prices have continued to rise. Data from Canadian Real Estate Association (MLS®), shows that the average residential price in Toronto in 2002 was $275,877 and in 2013 the average price was $454,089 with about a 90% difference in price from those years. Surprisingly, the Average Rent for Two-Bedroom Apartments in Toronto in 2002 was $1,047 and in 2013 was $1,213 for a 15.9% difference from those years.

Canadians are taking on more mortgage debt, and Canada’s federal housing agency stated to the finance ministry in 2014 that it has concerns regarding the increasing household debt and very high pricings in some of the urban markets.

Even with Canada tightening Government backed mortgage rules 4 times from the years 2008 and 2012, Canada’s debt to income ratio is at a record high for the 3rd quarter in 2014.

Not including mortgages, average Canadian debt is $20,891 according to a recent Equifax study, and Canadians household debt is 163% of their disposable income.

Also, in 2015 it is expected that interest rates on consumer loans, credit, and VR mortgages may rise. So if you are carrying high debt, working to pay off these debts sooner is a must. If you happen to get hit with a higher interest rate on any of your loans, it will take you longer to pay these off.

Pay Down Your Debts!

So, what can you do to help lessen your debt and help pay it down faster? First you want to stop your credit cards. You will need to determine how much you actually owe. Find out the exact total, so you can see what you are dealing with. Next, you need to arrange a strategy to start paying off your debts.

When paying off debts. A good place to start is paying off the credit cards that have the highest interest rates. These will be costing you more per month, and the sooner you can pay these off, then that frees up money that you can then use to pay off your other debts.

This is a great time to really think about your wants and needs. The want category tends to be the area that gets most people into trouble.

Next do you have items around your house that you are not using? This may be a good time to start selling them in the classifieds, and then use this extra money to pay down debts.

Another area you will want to look into is cutting your expenses, you can read more on expense cutting ideas. For more information on a wide range of topics, see our debt management section for more helpful ideas and tips to help your financial situation.

If you are in a situation where you need professional help or advice, call the offices of David Sklar & Associates to schedule a free consultation.

 

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt and live in the Toronto area, call us at 416-498-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
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20:18 16 Jun 22
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15:10 14 Jun 22
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12:50 14 Jun 22
Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
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21:33 06 Jun 22
The service I recieved from David Sklar and Associates was great. I was able to meet with Christin Sylver. She is kind, understanding and, professional. She was able to answer all the quesions that I had regarding my debt. At the end of our meetings, I felt that there is a heavy burden lifted from my shoulders. I recommend Chistine to anyone who is looking into debt relief.
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12:11 04 Jun 22
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Patty Murphy
21:34 18 May 22
Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
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01:24 11 May 22
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21:05 10 May 22
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03:08 10 May 22
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prettylush 13
02:42 10 May 22
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