Notice: Undefined index: crumbs in /home/canadar7/subdomains/master/public_html/components/com_jreviews/jreviews/cms_compat/joomla/includes/plugins/jreviews.php on line 116

Notice: Undefined index: listing in /home/canadar7/subdomains/master/public_html/components/com_jreviews/jreviews/cms_compat/joomla/includes/plugins/jreviews.php on line 118

Notice: Undefined index: ListingType in /home/canadar7/subdomains/master/public_html/components/com_jreviews/jreviews/controllers/components/metadata_content.php on line 33

Notice: Undefined index: ListingType in /home/canadar7/subdomains/master/public_html/components/com_jreviews/jreviews/controllers/components/metadata_content.php on line 66

Notice: Undefined index: metadesc in /home/canadar7/subdomains/master/public_html/components/com_jreviews/jreviews/controllers/components/metadata_content.php on line 72

Notice: Undefined index: summary in /home/canadar7/subdomains/master/public_html/components/com_jreviews/jreviews/controllers/components/metadata_content.php on line 75

Notice: Undefined index: description in /home/canadar7/subdomains/master/public_html/components/com_jreviews/jreviews/controllers/components/metadata_content.php on line 78

Notice: Undefined index: ListingType in /home/canadar7/subdomains/master/public_html/components/com_jreviews/jreviews/controllers/components/metadata_content.php on line 87

Notice: Undefined index: metakey in /home/canadar7/subdomains/master/public_html/components/com_jreviews/jreviews/controllers/components/metadata_content.php on line 93

Notice: Undefined index: summary in /home/canadar7/subdomains/master/public_html/components/com_jreviews/jreviews/controllers/components/metadata_opengraph.php on line 60

Notice: Undefined index: url in /home/canadar7/subdomains/master/public_html/components/com_jreviews/jreviews/controllers/components/metadata_opengraph.php on line 87

Notice: Undefined index: ListingType in /home/canadar7/subdomains/master/public_html/components/com_jreviews/jreviews/controllers/components/metadata_opengraph.php on line 89

Notice: Undefined index: ListingType in /home/canadar7/subdomains/master/public_html/components/com_jreviews/jreviews/controllers/components/metadata_twittercard.php on line 35

Notice: Undefined index: ListingType in /home/canadar7/subdomains/master/public_html/components/com_jreviews/jreviews/controllers/components/metadata_twittercard.php on line 37
In its latest study, insolvency firm Hoyes, Michalos &Associates revealed that the average unsecured debt of those filing for insolvency in the Kitchener-Waterloo region and Wellington County is $48,437, slightly lower than the Ontario average of $52,634.

The report defined unsecured debt as credit card debt, unsecured bank loans, income tax debt, and student loans.

The study added that while the average unsecured debt of those who file for insolvency has decreased over the last few years, the phenomenon remains largely driven by a changing housing market and a downward trend in household income.

“The reason for that is people are getting into trouble and having problems servicing their debt at lower levels,” co-owner Doug Hoyes told CBC News.

“In August, only 6% of our clients actually owned a home at the time they filed a bankruptcy or a proposal,” Hoyes added, noting that this is the lowest level he has seen for that metric.

This proportion has slightly gone up since then, which Hoyes attributed to falling house prices, especially considering the recent interest rate hike.He stated that homeowners who hold large unsecured debts seem to prefer filing for insolvency rather than using their homes to repay these obligations, even in part.

“We’re going to keep a real close

In its latest study, insolvency firm Hoyes, Michalos &Associates revealed that the average unsecured debt of those filing for insolvency in the Kitchener-Waterloo region and Wellington County is $48,437, slightly lower than the Ontario average of $52,634.

The report defined unsecured debt as credit card debt, unsecured bank loans, income tax debt, and student loans.

The study added that while the average unsecured debt of those who file for insolvency has decreased over the last few years, the phenomenon remains largely driven by a changing housing market and a downward trend in household income.

“The reason for that is people are getting into trouble and having problems servicing their debt at lower levels,” co-owner Doug Hoyes told CBC News.

“In August, only 6% of our clients actually owned a home at the time they filed a bankruptcy or a proposal,” Hoyes added, noting that this is the lowest level he has seen for that metric.

This proportion has slightly gone up since then, which Hoyes attributed to falling house prices, especially considering the recent interest rate hike.He stated that homeowners who hold large unsecured debts seem to prefer filing for insolvency rather than using their homes to repay these obligations, even in part.

“We’re going to keep a real close eye on [the number of people filing for insolvency],” Hoyes said, “Real estate has a huge amount to do with debt and the economy in general.”

“We deal with lots of people who are working two part-time jobs because they can't get one full time job,” the executive explained.“And as a result of that constrained income, it becomes harder and harder to service the debt.”

Related stories:

Are you looking to invest in property?If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage.Click here to get help choosing the best mortgage rate[1]

References

  1. ^ Click here to get help choosing the best mortgage rate (www.canadianrealestatemagazine.ca)

Enclosures

  1. ^ ()

Read more

Toronto ‘professional tenant’ gets the boot
Category: News
A 62-year-old Toronto man who has been accused of...
Fannie CEO's Dating Prompts Call for FHFA to Consider Ouster
(Bloomberg)—The inspector general of the Federal Housing...
 
0.0
 
0.0 (0)
Canada REIC Introducing Live Time Membership  Ends 24 September
Category: Club Updates
Helping others has always been...
 
0.0
 
0.0 (0)
Category: News
The Canada Mortgage and Housing Corporation (CMHC) is contemplating...
NYC Council Approves Midtown Rezoning, Paving Way for New Towers
(Bloomberg)—The New York City Council voted to...
 
0.0
 
0.0 (0)
SUPPORT GROWING FOR CALGARY MAYOR’S PLAN TO LEGALIZE SECONDARY SUITES
Calgary’s mayor is calling on council to approve a...
 
0.0
 
0.0 (0)
Real estate price gains helped Canadian net worth increase...
 
0.0
 
0.0 (0)
Observers’ takes on Toronto’s red-hot housing sector
Category: News
Fresh numbers on the Toronto real estate sector showed...
GTA has record year
Category: News
Red hot housing market sees record condo sales in...
Alterna Bank presents Canada’s first fully digital mortgage platform
Category: News
Alterna Bank has just launched the first—and...