In Canada, people are holding over $1 trillion dollars worth of mortgage debt. This is a drastic increase and the first time the total debt has passed this level, this is a 7.6% increase over the past year. Although the total amount of mortgage debt is extremely high, it is said that the mortgages themselves are rather low and are managing well. The average amount of a mortgages taken are around $146,000, which often is 50% of their home value. In Canada the average price for a new home is roughly $300,000. More people are making smarter decisions and paying off their mortgages with monthly payments and very few people are coming in with late or no payments.
I believe that to have debt this high is unbelievable its amazing how much money people put in to mortgages. I believe that there should be a tighter criteria on mortgages because if this debt keeps up it is going to drive the Canadian economy into the ground. On the other hand it is great that many of the people who are getting mortgages on their houses are paying them back, the bad thing is the fact that there is so much money being payed out via mortgages. Although the debt is so high the payback is coming steadily. To conclude I believe that it is important to let people have an equal chance at buying a house and the mortgage system allows that, for that reason i believe that being $1 trillion dollars in debt is OK.
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