Young homeowners expected early debt freedom: poll

Call it the youthful ignorance or a genuine determination – a way young homeowners are expected to free yourself from the shackles of debt more quickly than their parents.

Study of the freedom of quarterly debt of the Bank of Manulife reveals that Canadian houses of more than four of 10 aged between 30 and 39 prediction of free debt until the end of their forties. Another third prediction, they will have their debts paid by their statutory rights.

Reality, however, paints a very different picture.

The study noted that only 7% of dwellings are aged 40-49, and 16 per cent aged 50 to 59, actually have managed to achieve debt freedom.

This disconnect between good intentions and also actually following their customs themselves manifest by mortgage advances. Flexibility of payment is one of the most sought-after mortgage functions. Still CAAMP 2010 annual survey found that only 12% of the mortgagors actually made a lump-sum payment of their mortgage over the previous year.

Despite the good intentions of many new housing Manulife President and CEO Doug Cognick noted that the plan on each product shall be subject to unexpected life events, such as home repairs, illness or job loss.

"Debt freedom is possible, but this requires a commitment to financial discipline and for many people, some tips on how to plan finances in the long term," he said.

The average homeowner, aged 30-39 is $ 209,200 in total debt, according to the survey. These in their statutory have an average of $ 108,500 for long.

Surprisingly, the survey showed that 19% of the homes in their statutory actually increased their debt in the last 12 months. Another sobering statistic in the poll is that 20% of the housing age 50-59, or unable to provide that, where they would be debt-free, or is not expected to ever reach that point.

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Steve Huebl, THIS YEAR'S CMT MUSIC