50% increase in households behind in mortgage payments

50% increase in households behind in mortgage payments

Average Canadian family debt has hit $100,000 and about 17,400 households were behind in their mortgage payments in fall 2010, an increase of nearly 50 per cent since the recession began, according to the Vanier Institute of the Family. Credit card delinquency and bankruptcy levels were also higher than in pre-recessionary times.
 
“Even though standard economic indicators tell us the recession is technically over, the confidence Canadian families have in their economic and financial situation is shaky,” said Katherine Scott, the Institute’s director of programs. “As government at all levels craft their budgets for the coming year and look at cutting programs to reduce their deficits, they need to be mindful that the state of Canadian family finances continues to be fragile in many households.”
 
Vanier’s 12th annual report also notes debt-to-income ratio is at a record 150 per cent, meaning Canadian families owe $1,500 for every $1,000 earned in after-tax income. In 1990, average family debt was $56,800 with a debt-to-income ratio of 93 per cent. This equates to an increase of 78 per cent over the past 20 years.
8 Comments
  • Zoltan M. Padar 2011-02-19 1:21:09 AM
    The media plays a big role of people mindset just about everything. How to dish it out is very important as well. If I want to wake up to bad news I will subscribe to the Calgary Sun, almost every page has a report about murder and or bad news. I hate to see your magazine posting an article like this. How you dish it man, how to dish it. If it is like this I do not want you send me any more issue. We know the recession has brought misery, just don’t rub it in like this.
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  • Elfie Hayes 2011-02-19 2:09:27 AM
    Correct me if I'm wrong but recession means downturn in productivity, loss of jobs, greater family stress and often illness and divorce due to stress. Could that be having an impact of Canadians?

    While I know that we are seeing some folks having difficulty with their finances, this article makes it sound like we're all going to hell in a hand basket.

    If as you report, there is a 50% increase in households behind in their payments then we had approx 11,000 behind before the recession. And since that represents less than 1/2 of one percent of all Canadians, (the lowest defaults in the world) Today we have less than 3/4 of one percent in default.

    I'm still going to get up in the morning! I'll go to work and I'll do the things I do to help those select few when they need a financial solutions.

    The recession is over, the stock markets are up, our real estate market is stable, the Canadian dollar is at par with the US dollar, there is less unemployment and it's almost Spring! Can we talk about some of the good news please!
    Post a reply
  • Elfie Hayes 2011-02-19 2:09:43 AM
    Correct me if I'm wrong but recession means downturn in productivity, loss of jobs, greater family stress and often illness and divorce due to stress. Could that be having an impact of Canadians?

    While I know that we are seeing some folks having difficulty with their finances, this article makes it sound like we're all going to hell in a hand basket.

    If as you report, there is a 50% increase in households behind in their payments then we had approx 11,000 behind before the recession. And since that represents less than 1/2 of one percent of all Canadians, (the lowest defaults in the world) Today we have less than 3/4 of one percent in default.

    I'm still going to get up in the morning! I'll go to work and I'll do the things I do to help those select few when they need a financial solutions.

    The recession is over, the stock markets are up, our real estate market is stable, the Canadian dollar is at par with the US dollar, there is less unemployment and it's almost Spring! Can we talk about some of the good news please!
    Post a reply