Mintel, an international marketing intelligence agency, released a report this past Wednesday called Canadian Lifestyles 2015 which in addition to an expectation of over $1 trillion in consumer spending, also outlined Canadian’s expectations to prioritize paying off their debts in addition to making cutbacks on certain spending categories.
“While the drop in oil prices was expected to give consumers extra cash for spending, the record-high level of household debt is top of mind among Canadian consumers leading them to adopt a slightly more conservative approach to spending, focusing on paying off debts and making cutbacks,” said Carol Wong-Li, Senior Lifestyle and Leisure Analyst at Mintel.
Looking to balance work and play, Canadians were said to be turning their focus towards their personal well-being, their relationships with their loved-ones and leading healthier lives.
When it comes to extra funds, Canadians named paying off their debts, eating at restaurants and gifts for family members as the top categories for spending income after core or essential expenses.
At MonsterMortgage.ca, we have long advocated having a strategy for Canadians when it comes to paying down mortgages in Canada. A mortgage is more than just having the best mortgage rates, a quality mortgage product includes flexibility upon renewal, friendly terms for paying down your debt and conditions which allow home-owners to get to zero faster on their mortgage.
One of the main strategies that MonsterMortgage.ca has continued to recommend time and time again to clients with the appropriate means, is to take the variable rate mortgage and set their monthly or bi-weekly payments at a rate that reflects the fixed mortgage rates in the market. The extra $65 to $100 each month goes directly towards the principal balance of the mortgage – shaving years off of your mortgage, protecting yourself from future rate increases and ensuring less of your dollars go towards mortgage interest.
If you’re interested in reading more about the insights from the Mintel press-release, visit their website here.
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