October 2010
This article is provided by Brian Marling of Neighbourhood DLC – Canada’s #1 Mortgage Team 905.372.7222
I had the priviledge recently of meeting Gail Vaz-Oxlade, the host of the popular Slice TV show “Till Debt Do Us Part”. She was the main speaker at a local fundraiser put on by The United Way in support of the local Womens Shelter. It was great to be able to chat with her after everyone else had left and simply affirm that the things we often discuss with our clients on a regular basis are the exact same issues she deals with on her television show – maybe I should get a TV show?! Anyhow, the popularity of the show and the surprising number of male constituents just goes to prove that it has really hit a nerve in the general population. Plus the fact that the event was packed only underscores to me the tremendous need that exists for sound yet simple financial advise for the masses.
It may seem odd to some that our mandate at The Neighbourhood Mortgage Team is to help people become debt free including their mortgage. The question I often get is,”But aren’t you in the business of selling mortgages?”. Of course I am. However, our ultimate goal is to see our clients become debt free including their mortgage and to begin to create true wealth in their lifetime. Our mortgage business is primarily sustained by the referrals we receive from existing clients, friends and family. There will always be a need for mortgages and we feel that the value we add to our clients is our passion to help people get out from under the burden of debt that seems to enslave so many. And, frankly, it is simply not the banks mandate nor is it in their best interest to see you become debt free – quite the opposite actually.
This excerpt from a recent Globe & Mail publication highlights the debt problem Canadians are facing… Carney warns on debts
Bank of Canada Governor Mark Carney warned Canadians today to curb their enthusiasm for debt. Using particularly strong language, Mr. Carney said in a midday speech that the ratio of household debt to disposable income hit 146 per cent in the first quarter of the year, a record and a level that is closing in on that of the U.S.
Canadian consumer confidence sags
“This cannot continue,” the central bank chief warned, adding that while the net worth of Canadians is about six times the level of average disposable income, asset prices rise and fall but “debt endures.” And despite the “buoyancy” of the real estatemarket, the debt-to-asset ratio among Canadian households is at its highest in more than two decades.
“With Canadians working, but not as much as they would like, they have been borrowing,” Mr. Carney said. “Real household credit expanded rapidly throughout the recession, in contrast to previous downturns, and has continued to grow through the recovery. Canadian households have now collectively run a net financial deficit for 37 consecutive quarters. That is, their investment in housing has outstripped their total savings for over nine straight years. In effect, households are demanding funds from the rest of the economy, rather than providing them, as had been the case through the 1960s, 1970s, 1980s and 1990s.” Household balance sheets are growing “increasingly stretched,” and it’s possible Canadians are beginning to address the issue.
One way that we are trying to help & address the debt issues with our clients is thru our Financial Fitness Seminars. At our most recent one it was evident once again that there are scores of people who need some help to get out of the ‘Debt Rat-Race’. The problem for many is that they simply do not know where to even begin let alone who to talk to. For some there is a sense of shame and/or embarrassment that goes with their debt. We understand all of these things having gone thru our own financial difficulties in years gone by which is why we feel deeply about the need to genuinely help others. And when you combine our mandate with record low mortgage rates there has never been a better opportunity for us to help you then right now. Don’t wait another day, or certainly not until rates go up again, before you give us a call. We’ll be glad to help.
Here at Neighbourhood not only do we provide Award Winning Service and the best selection of mortgage products in the country, but we also offer our Free Financial Fitness Seminars and have added Personal Financial Coaching for those who truly desire a change but would like some assistance along the way. If you don’t change something then don’t expect different results. As always you can call us anytime to discuss how we may be able to help you.
At Neighbourhood, & the home of the Brian Marling Mortgage Team, we are concerned for the total well-being of our clients. That’s why we are taking the years of experience from our award winning office and offering a series of FREE Seminars to our clients and their friends & families and to the public at large. The seminars, entitled ‘Financial Fitness’, will be offered free of charge and will cover all the secrets of successful personal financial freedom. If interested please call our office at 905.372.7222 to reserve your spot as seating will be limited.