How low rates have changed us
Canadians celebrated the two-year anniversary of rock bottom interest rates this week.
But as a retirement planner, my fear is that they celebrated by taking on more debt rather than using such an auspicious occasion to pay it off. There is some flawed logic out there that since rates are low, debt repayment need not be a priority.
Quite to the contrary, if you`re the average Canadian with 1.67 children, an IQ of 99 and $112,329 of mortgage and other household debt, today`s rates are nearly irrelevant to you.
Realistically, very little debt is going to be paid off for most borrowers during what remains of the current low rate environment, however long that ends up to be. Most Canadian debt will be paid off many years into the future at future rates.
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