(NC)-Real estate has been an outstanding investment in most parts of Canada over the past few years. That's good news for the 8.5 million households in Canada that own their home, over two-thirds (68.4%) of all households, according to Statistics Canada.
However, it is another trend - rising levels of Canadian consumer debt - that is influencing what Canadians are doing with that home equity. Total debt is now equal to a new record of 131% of household income after transfers and income taxes, as reported in a study by The Vanier Institute of the Family. This compares to only 91% in 1990.
Consider this: if you have equity in your home, you can take advantage of attractive mortgage rates to save on interest charges. Compare current mortgage rates with the rates charged on your other debts. You'll likely find that many traditional borrowing alternatives, such as credit cards and lines of credit, carry higher interest rates which could translate into hundreds or thousands of dollars over the life of the loan.
Get the professional advice of a mortgage broker to determine whether it would pay to refinance in order to consolidate existing debt, finance home renovations, acquire second properties, make investments or even pay for your education.
You may also want to consider refinancing your existing mortgage. If your mortgage is coming up for renewal, this is the perfect time to tap into your home equity at today's excellent rates. Even if you are in the last year or two of your mortgage, it may make sense to renegotiate your mortgage now and roll in all your debt at a low rate.
Your best option - have a mortgage professional outline your options for using your mortgage to consolidate your debt and increase your cash flow.
For more information or to find a mortgage broker near you, visit www.resmor.com.
- News Canada