Surge in mortgages push Canadian consumer debt levels higher
Mortgage surge pushes consumer debt levels higher
With the real estate boom in Canada, the surge in mortgage borrowing is raising consumer debt levels higher despite credit card balances being at their lowest point in six years. New mortgage borrowing rose 41 per cent in the first quarter compared to the same time in 2020, according to a release from Equifax Inc. The increase in the number and size of mortgages Canadians are taking on brought the country’s outstanding consumer debts to nearly $2.1 trillion.
Do you trust your financial advisor?
A new survey from Ernst & Young’s shows many investors are wary of their financial advisors. Ernst & Young’s Global Wealth Research Report found that almost 44 per cent of respondents worry about hidden costs when working with their wealth managers. Despite the lack of trust, three-quarters of Canadian investors think their advisors provide value for the fees they pay.
Gen Z workers excited to get back to the office
With Canada’s economy slowly starting to reopen, different generations of Canadian’s are more excited about a return to in-office work than others. A survey conducted by Angus Reid on behalf of ADP Canada found 36 per cent of Gen Z workers are eager to get back into the office where as only 26 per cent of Baby Boomer’s said the same. Despite sentiments around returning to work differing for each group, four-in-ten respondents across all ages found an increase in their stress levels during the pandemic even when working from home.
Canadians see boost to net worth thanks to housing
If you own a home during the pandemic, your net worth probably just went up. According to a report from Statistics Canada, the net worth of households in the country increased by about $770 billion in the first three months of 2021. This is largely due to rising home prices seen across the country. The data shows mostly homeowners and older Canadians saw an increase to their net worth. The wealth of renters was up $43 billion where homeowners accounted for almost all of the first quarter gains.
No hurry back to Bay Street
While some Wall Street CEOs are eager to get their employees back to work, Bay Street executives are in no rush to bring in the cavalry. Some are finding the switch to be more efficient, profitable and better for employees. Manulife Financial Corp. Chief Executive Officer Roy Gori says he found remote work to be “incredibly” effective and plans to allow some of it when the pandemic is over.
“It doesn’t matter who gets the best job or buys the first house. What does drive financial success? Finding a role model early in your life,” – CTV’s Chief Financial Commentator Pattie Lovett-Reid.