Canada: So Close or So Far?

Canada: So Close or So Far?

During 2008, the Canadian economy was on the ground as unemployment skyrocketed through the roof while the average net worth per Canadian household plummeted. Fortunately, things are looking to be on the up-and-up now. According to research that was conducted in 2013, the average net for your average household in Canada is looking to be about $442,000 which is a massive 7.7% increase from the previous year.

So what is attributing to this? Some say investments, while others say real estate – the answer: a bit of both. Household debt has been increased by a slight 2% which is actually a good thing as it helps the economical machine run a little better. This is combined with a flat consumer debt. The stock market also stayed strong which really helped investors invest their money easier, but it seems like more people were also saving more and not taking on quite as much debt.

As far as Canada goes provincially; British Columbia remains to be the richest province. This isn’t news though as BC has been the richest province for several years now. Your average household net work in British Columbia is nearly $600,000. Alberta is under them at $530,000 with Ontario coming in a close third place at just $10,000 underneath that. If you’re interested to see what your net worth is, you can find calculators online to figure the total.

While the economy seems to be really looking on the upside, there have lots of discussion about mortgage plans in Canada and whether or not they are really as good as they say they are. Take the standard 2.99 per cent five-year mortgage plan for instance. This is one of the most popular mortgage plan and the general consensus is that it’s a pretty decent mortgage plan, especially for those who feel they can pay their house off in 5 years. However, like I said, some people are taking notice that this isn’t necessarily as good as it might sound. Just because The Bank of Montreal’s 2.99 per cent mortgage plan might look tempting, just know that you can do better than 2.99 per cent. There are reports of people getting 2.84 per cent rates and even under. Before you accept any sort of mortgage, you should definitely see what you qualify for. The results might astound you!

Canada: So Close or So Far Credit Picture License: Jerry Bowley via photopin cc