The CBC recently quoted a study that reported that the overall sum of all of Canada’s outstanding mortgage debt has recently exceeded $1 trillion dollars. This is likely bad news but I will show you why it isn’t ALL bad news.
It is fairly well broadcasted that North America has a terribly low savings rate and therefore it is fair to assume that the bulk of the debt outstanding was acquired for the purpose of purchasing non-productive (aka leisurely) items and services. However, this article addresses that small section of the population that are holding mortgage balances for the purpose of leveraging so that they can invest.
What is leveraging? Leveraging is basically the use of debt in order to invest. Ie. if you do not have any savings but you have a house that is free and clear – you can borrow money against the house and then use that money to invest and hopefully turn a profit.
The reason for this article is to simply note that although our country’s total mortgage balance seems to be increasing, it is not entirely due to leisurely products or services. Being a Mortgage Associate in Calgary, Ab – I see many people who are mortgaged to the hilt in order to invest. Although this isn’t always a successful procedure – it does mean these people are trying to be successful producers, rather than consumers.
Trevor Hickey, B.A.
Mortgage Associate
Concord Mortgage Group Ltd.
#107 – 1905 Centre Street NW
Calgary, Alberta
T2E 2S7
Bus: (403) 290-1990
Cell: (403) 860-8738
Fax: 1-888-587-1426
Email: trevor@concordmortgage.ca
Website: www.mortgagebrokercalgary.info
Trevor Hickey, B.A.
Mortgage Associate
Concord Mortgage Group Ltd.
#107 – 1905 Centre Street NW
Calgary, Alberta
T2E 2S7
Bus: (403) 290-1990
Cell: (403) 860-8738
Fax: 1-888-587-1426
Email: trevor@concordmortgage.ca
Website: www.mortgagebrokercalgary.info
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