But many still face financial struggles despite improving economic confidence
Canadians are becoming more hopeful about their finances, including homebuying plans and retirement savings, as the Bank of Canada continues to cut interest rates.
A recent survey by Maru Public Opinion revealed that 13% of Canadians are considering buying a home within the next two months, up from 11% in the previous survey. The increase is most noticeable among younger Canadians, aged 18 to 34, and in regions like Manitoba, Saskatchewan, and British Columbia.
“This rise reflects a steady upward lift since reports surfaced in May that the Bank of Canada was likely to begin cutting interest rates in June,” said Maru executive vice president John Wright.
The cuts have eased borrowing costs, making homeownership seem more attainable. However, Wright also suggested that for some, the motivation to buy may be driven by a need to sell existing homes and downsize to reduce debt.
“There is growing pressure that there is group who need to get out from under debt and expense,” Wright said. “The marketplace is not just a buyer’s market, there is a great pent-up demand for selling.
“[Either way], anything that moves the marketplace for buying homes is generally seen as a positive.”
The survey also showed an increasing focus on retirement planning, with 56% of respondents saying they plan to save for retirement, up from earlier surveys. This marks the highest level of retirement saving intentions since January 2021, suggesting that Canadians are shifting their attention toward long-term financial security as interest rates ease.
A growing number of Canadians are also feeling more optimistic about the economic prospects in their communities. Forty-five percent (45%) believe their local economy will improve in the coming months, up from 38% in July.
Though modest, this uptick reflects a gradual improvement in economic confidence as rate cuts begin to take effect.
While optimism is on the rise, financial difficulties remain a reality for many. The survey found that 41% of respondents are struggling to make ends meet, up from 38% in the previous poll. Wright noted that this trend has been steadily increasing, particularly in urban areas where the cost of living is higher.
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Moreover, 54% of Canadians reported being concerned about their daily finances, with 11% indicating they might face bankruptcy—both slight increases from earlier surveys.
Overall, the Maru Household Outlook Index improved for the third consecutive month, reaching 90 points, though it remains below 100, indicating continued caution. The index, which measures how Canadians feel about their personal finances and the broader economy, has been in negative territory since December 2021, with its lowest point in March 2023.
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