Survey Says Canadians Stressed About Consumer Debt Loads

High Consumer Debts Loads have Canadians Stressed!!

CTV news did an intereview this week in which they asked Elfie to comment on how she sees consumers reacting to their debt this week. 

"As a Mortgage Broker we see a great number of folks who are coming to us for advice about their debts". Stated Elfie.  With the changes that Jim Flaherty made to Mortgage refinance in the Spring of 2011, it's harder to re-finance your high interest rate credit into your low rate mortgage. That has many home owners in a situtation where Consumer Proposal or even Bankruptcy become the only way to deal with run-away debt.

While Home owners have always had to qualify using 32% of their earned income to support their mortgage payment, Banks have Carte Blanche when it comes to offering lines of credit, car loans or leases and credit cards once a home is purhcased. This is where the problem begins.

Mortgage Brokers rarely see a borrower who can't make the mortgage payment. That's becasue CMHC and the lender use strict risk management to make sure house debt is within the means of the borrower based on the debts they have at time of purchase

Banks want increased profits and they do it by offering companion products using much lower borrowing crtieria. Thus consumers take on too much debt once they own a home. Throw in a job loss due to a soft economic climate, unexpected illness, or a divorce and you have a finanical crisis on your hands. No longer being able to consolidate debts into the mortgage as before and a consumer's hands are tied.

If you ar efinding it difficu;t to make your monthly pyments, get advice from Mortgage Intelligence right away. We know how to help and we will show you how to deal with your debts before your credit rating is affected. We're here to help, not to judge. Contact us today.