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Canadian Households debt and Vancouver cost of living rising

May 20, 2012

Filed under: North Vancouver,Real Estate Market,Vancouver — Richard Morrison @ 2:36 pm
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According to the recently released figures, the household debts in Canada have skyrocketed hitting some unbelievable figures. These debts are in form of loans, collateral and some other forms of credit. In the initial quarter of this new financial year alone, the debts have increased from the initial sum of $1.526 trillion to 1.548 trillion. This is not only unacceptable but more of a torture to the ordinary citizen in Vancouver as they can no longer afford to live a decent life. The cost of living has also gone up and so the spending power of Vancouver home residents is greatly reduced. The situation has even been made worse by the new tight mortgage rules that have caused a drastic fall in the purchase and resale of homes.


The disposable incomes of Canadian Citizens have been greatly hit. Its ratio to the household debts has risen from 146.2 percent to a high of 147.3 percent. This makes it hard, if not impossible, for Canadians to tackle this ever-increasing debts. With little disposable income, the Canadian market is greatly affected as the Vancouver citizen’s purchasing power has been dealt a great blow. People now turn to basic commodity and their capacity to invest is hampered.
With the exceedingly low interest rates, in the current mortgage rules, the Vancouver housing market may get over excited increasing their borrowing and hence causing a rise in household debts.


As at January 2012, Vancouver, Canada was ranked as the 4th most expensive city to live with Tokyo, Japan leading the pack. You may argue that this is not extremely high given the wealth associated with the G8 countries, and the fact that Vancouver is Gorgeous. However, this high cost of living is bitterly pinching on the poor citizen of this nation. Some citizens find it extremely hard even to feed their families. Hunger has become a harsh reality in Canada especially in the arctic. While climatic change may be blamed for hunger in the arctic, rising household debts and the escalating cost of living make it hard for even a citizen in the heart of Vancouver to enjoy this privilege or even have some extra cash to invest.


With dwindling local market and low disposable income to spend or invest, the economy of Canada will be adversely affected. Nevertheless, unless households and the government plan well, these two factors will continue to hurt Canada‘s economy.

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