The mortgage lender’s Wealth Institute has published a report on household debt and Canadians’ attitude towards it.
It found that 36 per cent are nervous and insecure about debt although 22 per cent are using it to build wealth. One-fifth say they don’t need debt and won’t use it; 16 per cent use borrowing to help friends and family; seven per cent use it in excess for consumption.
The low interest rates of recent years has allowed many Canadians to reduce debt and the study found that it has made paying down a mortgage possible for 35 per cent of respondents.
The lower cost of borrowing has also allowed 26 per cent to purchase an investment (including real estate) with 23 per cent able to buy a home sooner than expected and 18 per cent being able to buy a bigger house.
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Almost half of Canadian consumers polled by the Bank of Montreal say that real estate has been influenced by rising real estate prices.