The Canadian Home Program (CHP) was designed to combine financial literacy with home ownership. With interest rates at 40 year lows far too many Canadians are caught up in the hype of a housing market (think bubble) that hasn’t really declined in almost 10 years. Sooner or later interest rates will start to climb – they always do – so the CHP is about educating and assisting consumers to ensure they buy the right home, at the right price, based on sound choices, and keep the home when market conditions change.
According to a recent article at Huffington Post Canadian debt has continued to reach epic levels where Canadians carry more consumer debt than any other G7 country, and the 2nd highest in the G20. In fact, Canada has the 3rd highest debt levels in the world!
The financial profile of consumers is primarily made up of a combination of excessive mortgage debt (over priced homes purchased at record level low interest rates), and consumer debt. When housing grows year after year, consumers experience a false sense of security. They see the equity in their home as a bank machine – to be accessed when times are tough. What happens when that equity is no longer there?
Our goal at CHP is to make sure when the housing markets turn, and foreclosures rise, those who have chosen to purchase a home based on sound financial decisions will weather the storm. After all, isn’t that how Canadians have always done it?