Majority Of Canadian Homeowners Struggling Financially: Poll

A new poll by RATESDOTCA has found that a majority (55%) of Canadian homeowners are
struggling financially and say they couldn’t afford more than $200 in increased monthly costs.

The survey found that nearly 40% of Canadian homeowners are concerned about their
finances. The survey, which was conducted by Leger Marketing, asked 1,513 Canadians about
their finances as they face rising interest rates and the highest inflation in more than 30 years.

Homeowners, especially those who bought prior to the pandemic, have enjoyed massive equity
gains in the past decade. The average price of a home in Canada hit a record $816,720 in
February, according to the Canadian Real Estate Association (CREA). That is a near doubling
of the $468,350 average home price just three years ago.

The survey found that 39% of Canadian homeowners are concerned about their finances,
including 18% who said they are very concerned. Of the concerned respondents, half said they
bought their home in the past two years.

Canadians older than age 55 were the least likely to be concerned about their finances, with
32% of that group being either concerned or very concerned. Those aged 35-54 were the most
concerned, including 23% of this age group saying they are very concerned about their
finances, and nearly half the group showing some level of concern (47%).

The survey also found that Canadian homeowners do not have much financial wiggle room.
Less than half (45%) of people polled said they could afford $201 to $500 in increased monthly
costs, while 19% said they could afford $501 to $1,000. Only 9% said they could afford an
increase of $1,000 or more in monthly costs.

The survey also found that many Canadian homeowners cannot afford to save more than 5% of
their monthly income. Most experts recommend targeting 10% or more to help save for
retirement.

The polling focused on homeowners, with 62% of respondents saying they owned their home.
Leger conducted the survey May 13 to 15.