Ravi Punia - REALTOR®

Fraser Valley Specialist

FRASER VALLEY REAL ESTATE BLOG POSTS

Lightening Up on Real Estate Debt

Excellent interview below with a personal finance expert and educator talking about the burden of debt that many Canadian households are feeling the crushing weight of during this coronavirus pandemic.


This interview is connected to the broader theme of deleveraging and downsizing that may become more apparent and necessary on the part of some homeowners.  Those who may have bought a house recently, and having taken on a big mortgage to do so, may be impacted most.  That is because any negative income shock (i.e. reduced work hours, layoffs, job loss, furlough etc.) can make meeting monthly payment obligations like a mortgage, problematic.


Yes, emergency income replacement measures provided by the government are temporarily helping some people hopefully bridge over to a "new normal".  But, those supports will be coming to an end in the coming months; maybe as early as Sept. 1 as discussed in the video.


If you find yourself in a property that is causing you stress from a heavy mortgage load, you may want to consider lightening up on your real estate ownership costs.  Deleveraging, by downsizing your home, is one possible way to free up cash flow and reduce the stress, anxiety and sleepless nights that too much mortgage debt can cause.  This is especially true in and around expensive real estate markets, like the Vancouver area.


As has been stated in recent blog posts, downsizing within or to the Fraser Valley is maybe a great option for those looking to get out of expensive housing that they really can't afford comfortably.  Surrey, Langley and Abbotsford are relatively affordable choices in the Metro Vancouver area to do this.


Here is a direct link to the video





*This blog communication is not intended to cause or induce breach of an existing agency agreement.  Views are my own and do not reflect those of any organizations that I may be associated with.

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