While economists and politicians debate their varying levels of concern about Canadian households’ debt levels it seems those with the debt are less worried. A new poll for CIBC has found that two thirds of Canadians are comfortable with the level of debt including mortgages that they carry. The poll backs up reports on rising debt; 31 per cent say they have increased their borrowing in the past year, mainly on discretionary purchases such as vacations, cars and home renovations.
The mortgage lender’s survey also discovered that of those who are ok with the debt they have most (41 per cent) would not want to take on any more but a quarter believe they could take on additional borrowing if needed. Of the 34 per cent who are uncomfortable with their debt levels 23 per cent say they would have a problem if their current circumstances change; this would include rising interest rates. Another 10 per cent are already feeling overwhelmed with their debts and could therefore present a risk to lenders
The mortgage lender’s survey also discovered that of those who are ok with the debt they have most (41 per cent) would not want to take on any more but a quarter believe they could take on additional borrowing if needed. Of the 34 per cent who are uncomfortable with their debt levels 23 per cent say they would have a problem if their current circumstances change; this would include rising interest rates. Another 10 per cent are already feeling overwhelmed with their debts and could therefore present a risk to lenders
