Canadians don’t know how in debt they are
Canadians are ignorant of their real level of debt according to a new poll. The Ipsos Read study for insolvency firm MNP asked people what they thought the average debt to income ratio in Canada is; most opted for 48 per cent while the actual figure is 162 per cent. Among those who owe more than they owe - technically insolvent - Quebec topped the league with 28 per cent followed by Atlantic Canada (24 per cent), Alberta, Saskatchewan and Manitoba (23 per cent), Ontario (16 per cent) and British Columbia (14 per cent). Younger Canadians are most likely to be in high levels of debt compared to their income with the situation easing for older age groups. Almost a third of those renting their homes are likely to be technically insolvent along with a similar number of parents. The survey also found that 17 per cent of homeowners would take out a home equity line of credit to finance a large purchase and one in ten would switch their mortgage from fixed to variable.