Mortgages: More than half of Canadians to carry household debt into retirement | Mortga... - 1 views
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The one thing Canadians won’t be retiring anytime soon is their mortgage debt
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People are more sophisticated in their approach to personal finance today than the previous generation
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People are living longer, working longer and making real estate plans longer or further into their lives
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Another trend, one which was not considered by the industry before, is people moving into more expensive, upscale homes after retirement
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Another part of the trend could very well be strategic. With rates on a five-year closed mortgage at about 3.5%, paying down that debt might not seem as high a priority for many homeowners
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The extremely low level of interest rates is acting both as an inducement for people to take on more debt than they would have in the past and on the flipside not encouraging them to save as in the past
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People could end up working longer and it might also mean there will be that much less equity in the home you’ll be leaving to heirs
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the issue is how it’s affecting retirement with half of Canadian homeowners saying their debt load was hindering their ability to plan and save