A significant share of Canadians would rather sell expensive assets
When unable to make mortgage payments, Canadians would choose to let go of their more expensive belongings instead of buying mortgage protection, according to a new study by the TD Group.
The latest TD Insurance Survey suggested that a notable share of Canadians “would rather sell a high-cost asset, like jewellery, instead of purchasing a mortgage protection insurance plan.”
The analysis found that more than 53% of Canadian homeowners would “take significant action to save their homes after an unexpected event,” TD said, while approximately 40% would withdraw funds from major investments such as retirement funds or TFSAs.
Another 12% would sell “high-cost assets such as technology, art, and jewellery.”
“These results demonstrate that while Canadians value their homes, they have undervalued the power of mortgage protection, which would prevent homeowners from going to such great lengths to save their greatest assets,” TD said.
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However, the pandemic might have initiated a paradigm shift, if a recent survey by the Canadian Association of Financial Institutions in Insurance (CAFII) is any indication.
Approximately 65% of the CAFII poll’s respondents said that they are more likely to obtain credit protection insurance for a mortgage or home equity line of credit now, when compared to the pre-pandemic era.
“This suggests that more Canadians will consider credit protection in the future and won’t have to sell high-cost assets when an unexpected hardship occurs,” TD said.
