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Why First-Time Home Buyers Are Subject to Debt

In a recent article published by The Huffington Post Canada, caution is drawn to first-time home buyers aged 35-44 who are ‘particularly vulnerable’ to debt and who are currently carrying the heaviest load. This age group has accumulated more debt than those who came before them, according to a report done by RBC. In addition, debts are eating away at their net worth, despite increases in earnings.

The Reason

One reason why first-time home buyers are subject to debt is due to a lack of savings. This is based on the preference to spend on current consumption rather than saving for the future. However, the main cause can be attributed to the drastic increase in housing prices that are making homes more and more unaffordable. Although mortgage debt accounts for the majority of the debt increase, non-related real estate debt has also increased as a result of increasing lines of credit and car loans.

The Result

Buying your first home should be an exciting time, but the rising prices for real estate and resulting high payments for new home buyers can be discouraging to say the least. Fear of being unable to afford a mortgage can be very overwhelming and stressful.

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The Solution – Manny Johar of Expert Mortgage

If you have found yourself in the above situation, or you would like to purchase your first home and want to learn more about alternative financing, Manny Johar of Expert Mortgage can help! The fastest way to get rid of debt is to take action; waiting can only make the situation worse. Although there is no one right solution to a debt problem, there are a number options available to make your debt more manageable so you can rest a little easier moving forward. With expert knowledge and advice from Manny Johar, he can find you guaranteed low interest rates – no questions asked! Have questions? Contact him today at 1 888-247-4583.

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