High Cost of Home Ownership Exposes Strains in Canada’s Housing Market

A new survey conducted by Manulife Bank Canada found more than one in three homeowners has been "caught short" at least once in the past year due to not having sufficient funds to cover expenses.

The average mortgage debt in Canada has increased to $181,000. Last fall, the average mortgage debt was $175,000. Vancouver tops the list of average mortgage debt currently outstanding at $259,000. Calgary and Edmonton are at $217,000, Toronto is at $194,000 and Montreal is at $156,000.

The low interest rate has driven the real estate market to a position where homeowners are living with few funds set aside for emergency such as car problems or home repairs, let alone making a mortgage payment on time.

According to the survey, 94 per cent of homeowners want to continue to own their home for the first few years of retirement. About 75 per cent of homeowners in their 50s would prefer to live in their current home upon retirement.

Reference: Business News Network (BNN)

http://www.bnn.ca/…/The-rising-cost-of-home-ownership-expos…