2 July 2019

“Families with a higher debt-to-asset ratio face various financial problems more often, including missed or delayed payments, using payday loans,” – the report says.

A good example from the report’s findings:

• Almost 16% of families with a debt-to-asset ratio exceeding 50% missed or delayed a non-mortgage payment, while it was only 7% in the segment of those who have a debt-to-asset ratio below 25%.
• About 1.7% of families in the lowest debt-to-asset sector missed or delayed a mortgage payment, compared to 7% in case of those with a debt-to-asset ratio higher than 50%.

The report says 4% of mortgage holders missed or delayed a mortgage payment in the year preceding the poll.

However, RateSpy Rob McLister noted: “The actual mortgage arrears are only 0.25%. In other words, just 2.5 out of 1,000 are 90+ days past due on their mortgage, so some of the borrowers who skipped a mortgage payment probably used their bank’s skip-a-payment feature.”

If you own a real estate property and accumulated substantial amount of high-interest credit cards debt, please talk to your mortgage broker. Mortgage rates are extremely low today and it might be a good idea to refinance your existing mortgage and get rid of bad debt. In some cases, it will free up hundreds or even thousands of dollars monthly for every day expenses or to pay your mortgage faster. MortgageLegko.com team is hosting free Summer BBQ on July 14th and will be doing presentation about ways to free up equity for older homeowners and some new exiting programs for first-time buyers. Please register here to get your free ticket!