Friday, February 18, 2011

Average Canadian Family Debt Up

The average Canadian family is dealing with $100,000 in debt and owes far more than it earns, according to a new report released by the Vanier Institute of the Family suggests the debt-to-income ratio is a record 150 per cent. So a Canadian family owes $1,500 for every after tax $1,000 it earns.

As per Katherine Scott, director of programs for the Vanier Institute of the Family "As governments 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."

Now that’s the average. A lot of families may be dealing with debts much higher than that. Primarily a lot of this can be handled effectively by consolidating loans. I recently did that for a client. High interest payments can drag the benefit of making payments down. A lot of home owners can leverage their house, although this is effective on a case by case basis as every situation is different. More so, the six digit loan amount is a psychological mark that has now been crossed in our society.

The figure includes mortgages, student loans, credit card debts and lines of credit. In cities like Toronto or the Greater Toronto Area, real estate is generally more expensive than other parts of Canada. The cost of owning a home is getting more expensive as real estate brokers try to help clients deal with two land transfer taxes, HST, lower mortgage amortization periods and stringent lending guidelines.

Not all debt is bad. Handled correctly the good debt can help with the bad. It’s like cholesterol. Housing and education related debts are considered good debts as they increase your personal and financial net worth. The historically low interest rates will inevitably rise, which will put some in a precarious situation. Consult with a professional such as a real estate broker or a financial planner if you find yourself on the verge of being overwhelmed. If you are already overwhelmed with debt, you are probably late in taking action.

The Institute suggests the level of debt most families are dealing with has been on the rise for the past 20 years. In 1990, the average family debt stood at $56,800, with a debt-to-income ratio of 93 per cent. According to the report, when the debt ratio began to rise, the savings rate began to fall. In 1990, the average Canadian family put $8,000 into savings, or 13 per cent. In 2010, families managed to save $2,500, or 4.2 per cent.

Other data compiled by the Institute suggests 17,400 households were behind in their mortgage payments by three or more months in 2010, up by 50 per cent since the recession began. Credit card delinquencies and bankruptcy rates also remain higher than before the recession.  

Jagdeep Singh, B. Arch.

Real Estate Broker

647-28-SINGH

We are what we repeatedly do. Excellence, therefore, is not an act but a habit.

Direct Tel: 647-287-4644

Direct Fax: 866-450-9199

www.JagdeepSingh.ca

Connect Via:            

Century 21 New Star Realty Inc., Brokerage

Independently owned and operated

1450 Midland Avenue, Suite 206

Toronto ON  M1P 4Z8

Off Tel: 416-288-0800

Off Fax: 416-288-8038

This message is intended only for the use of the individual or entity to which it is addressed, and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. This message is not intended to solicit parties currently under contract. If you have received this communication in error, please notify the sender immediately by email and delete the message.

Monday, February 14, 2011

Here is Cause Worth Supporting

I have been a firm believer in “Analysed Giving” rather than blindly contributing to charities that fund themselves more than the cause. While I am sure some good comes of most, a lot of charities these days are getting their status revoked due to malpractices. Amnesty International is one organization that has its place in world today more than over. Read the letter they send to individual donors to have a glimpse into the lives of some of the people that require help.

And if you can, please contribute. Thank you.

For me, this is the true meaning of Valentine’s Day.

Jagdeep Singh, B. Arch.

Real Estate Broker

647-28-SINGH

We are what we repeatedly do. Excellence, therefore, is not an act but a habit.

Direct Tel: 647-287-4644

Direct Fax: 866-450-9199

www.JagdeepSingh.ca

Connect Via:            

Century 21 New Star Realty Inc., Brokerage

Independently owned and operated

1450 Midland Avenue, Suite 206

Toronto ON  M1P 4Z8

Off Tel: 416-288-0800

Off Fax: 416-288-8038

This message is intended only for the use of the individual or entity to which it is addressed, and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. This message is not intended to solicit parties currently under contract. If you have received this communication in error, please notify the sender immediately by email and delete the message.

Happy Valentine's Day

$1.5 billion will be spent in Canada today. Happy Valentine’s Day to everyone. I want to start a Real Estate Day (or month for that matter)

Jagdeep Singh, B. Arch.

Real Estate Broker

647-28-SINGH

We are what we repeatedly do. Excellence, therefore, is not an act but a habit.

Direct Tel: 647-287-4644

Direct Fax: 866-450-9199

www.JagdeepSingh.ca

Connect Via:            

Century 21 New Star Realty Inc., Brokerage

Independently owned and operated

1450 Midland Avenue, Suite 206

Toronto ON  M1P 4Z8

Off Tel: 416-288-0800

Off Fax: 416-288-8038

This message is intended only for the use of the individual or entity to which it is addressed, and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. This message is not intended to solicit parties currently under contract. If you have received this communication in error, please notify the sender immediately by email and delete the message.

Wednesday, February 9, 2011

Take Charge of Your Energy Usage

Do you own real estate in Ontario or thinking about buying a house or selling a house. The Ontario Energy Board wants you to know more about your rights and responsibilities as an energy consumer. Being well-informed can help you make the right energy decisions for you and your family or small business. If you're thinking about switching who supplies your energy by signing a retail energy contract, here are some of the things you should keep in mind:

•             You have options. Take the time to understand your options and compare the price your utility offers with what the retail supplier is offering.

•             People representing energy retailers are required to present proper identification that displays their photograph, name, and the company they represent.

•             You don't have to show a sales agent your energy bill. Treat it like a credit card - keep it confidential until you're ready to sign a contract.

•             If you sign a contract with an energy retailer and change your mind, you have 10 days to cancel the contract. If you cancel the contract after that time, you may have to pay a cancellation fee.

As a home owner, thinking to buy a bigger house, or buying a home and selling a home period, read about the information that can help you. Real estate in Toronto and the Greater Toronto Area is expensive anyways compared to some of the other areas in Ontario. It would help to minimize the cost as much as you can.

For more information about energy pricing and energy contracts, please visit the Board's website at http://www.oeb.gov.on.ca/OEB/Consumers

The Ontario Energy Board regulates Ontario's electricity and natural gas sectors in the public interest.

Jagdeep Singh, B. Arch.

Real Estate Broker

647-28-SINGH

We are what we repeatedly do. Excellence, therefore, is not an act but a habit.

Direct Tel: 647-287-4644

Direct Fax: 866-450-9199

www.JagdeepSingh.ca

Century 21 New Star Realty Inc., Brokerage

Independently owned and operated

1450 Midland Avenue, Suite 206

Toronto ON  M1P 4Z8

Off Tel: 416-288-0800

Off Fax: 416-288-8038

This message is intended only for the use of the individual or entity to which it is addressed, and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. This message is not intended to solicit parties currently under contract. If you have received this communication in error, please notify the sender immediately by email and delete the message.