A significant proportion of Canadians have trouble fulfilling their obligations due to lack of fiscal stability
A fresh survey conducted by IPSOS for Toronto-Dominion Bank showed that almost 40 per cent of Canadians (around 10 million) experienced inconsistent and/or unstable month-to-month income over the past year, with incomes shifting by as much as 25 per cent for an estimated 3.3 million working adults.
“Our findings suggest that impact is both pervasive and profound – making it hard for many people to live the life they want today, let alone plan for and feel confident about their future,” TD Bank Group CEO and president Bharat Masrani told RCI.
Prosper Canada CEO of national charity Elizabeth Mulholland said that these numbers only confirm the dire need for a “sea change” in the availability of opportunities for financial stability among Canadian households.
“Rising income volatility appears to be making it far more challenging for households at all income levels to manage financially, but Canadians with lower incomes are really feeling this most sharply,” Mulholland noted.
In addition, a study by Manulife Bank of Canada uncovered an 11 per cent increase in mortgage debt last year, up to $201,000. Around half of those surveyed (51 per cent) had $5,000 or less allocated for financial emergencies, while 20 per cent have no funds set aside at all.
Fully 70 per cent of the respondents stated that a 10 per cent increase in mortgage payments—which could stem from as little as a 1-per-cent uptick in current interest rate levels—will prove impossible for them to pay.
“The truth about debt in Canada is that many homeowners are not prepared to adjust to rising interest rates, unforeseen expenses or interruption in their income,” Manulife Bank of Canada president and CEO Rick Lunny said.
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“The truth about debt in Canada is that many homeowners are not prepared to adjust to rising interest rates, unforeseen expenses or interruption in their income,” Manulife Bank of Canada president and CEO Rick Lunny said.
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Formidable debt levels preventing more and more seniors from owning homes -study
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