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Mega Debt - Crazy Gross Debt Services Ratios in Vancouver

Blog by Ian Watt | June 12th, 2017

VanCity Credit Union published their 2017 report showing the most affordable and least affordable places to buy in British Columbia. Langley had the cheapest Gross Debt Services Ratio of only 18% meaning 18% of the total household income goes towards the mortgage. West Vancouver had the worst Gross Debt Services Ratio of 191% meaning 191% of the total household income goes towards the mortgage. Which means their mortgages are not being paid with their salaries. Crazy times!

Ian Watt: Hi good afternoon it’s Ian Watt in Downtown Vancouver. VanCity are provincial credit unit put out the report last week and it’s about gross debt service ratio which means the amount of household income that goes towards paying your mortgages etc. Now mortgage, strata fees, taxes etc. Number one place in the province most economical was Langley with 18%, Sooke on the island which was 24% and Victoria which was 25% of your household income goes toward your mortgages etc., those are really reasonable numbers. However on the opposite end West Vancouver had a 191% of their household income goes towards their mortgages. So this kind of means that people completely highly leveraged really in debt and also money is coming from outs where to pay those mortgages right? Not their income. The District of North Vancouver 92% of household income goes toward paying the mortgages. Obviously again money is coming from outs where bank and mom and dad or something is going towards that because there is no way you can live of with 8%, 92% of the household income is going towards pay mortgages in the District of North Vancouver. And in Vancouver still mind blowing is 48% get services ratio roles debt service ratio which means 48% of the income is going toward the mortgages. I’m working my butt off to get out of debt so all my mortgages get down to zero in the next five years that’s my goal. But I don’t think that’s the goal for a lot of people in Vancouver it seems to be really in vogue to have a ferrari, a range rover, fancy car and a whole lot of debt. I don’t get why they’re like that but it seems to be the new style of Vancouver. Get into debt because money is cheap and pretend you’re rich. My name is Ian Watt if you have any questions you can always email me at ianwatt@ianwatt.ca. Thank you very much and have a great day!