Another new survey highlights the potentially hard impact of debt on Canadian homeowners. The online survey, conducted by Environics for one of the country’s big insurance and trust firms suggests that a significant portion of Canadian homeowners lack awareness about their financial situation.
Nearly a quarter of the respondents do not know how much money they have in their emergency fund. Of those that do know, the average is about $5000. But 14% say they have nothing.
Nearly half of those surveyed, 46%, say they would struggle to make their mortgage payments in less than six months, if the primary income earner became unemployed.
The survey also exposed a significant generational divide.
Millennials, who tend to have the highest exposure to debt, tend to think their mortgage rates are too high – according to 36% of the responses. Interestingly, about 41% of Millennials believe they will be able to retire, while only about a third of Gen-Xers think they will be able to give up work.
For Boomers, 45% are looking forward to a sound retirement, with some 79% wanting to stay in the family home. However, about one-fifth of Boomers, 22%, have almost all of their wealth tied-up in that home.