It turns out that many Canadian homeowners would be totally screwed in the event of an unexpected emergency.
A new survey by Manulife Bank found that nearly half of the country’s homeowners live without substantial emergency funds and would not be prepared for a financial blow like a job loss.
Released today, the poll revealed that 24 per cent of those surveyed don’t know how much is in their emergency fund, 14 per cent have not put away any funds and nine per cent have access to $1,000 or less.
While we’ve widely reported on the financial struggles facing millennials – many of whom have less than $1000 in savings or are getting help from their parents – these aren’t just young Canadians either.
Anyway, the remainder of those surveyed have up to $10,000 saved, with the average amount being $5,000.
According to Manulife, among those polled, homeowners had an average of $174,000 in mortgage debt, with an average of 28 per cent of their net income going toward paying off their home each month.
About half (46 per cent) of Canadians polled say they would have a hard time making their monthly mortgage payments in less than six years if the primary income earner in the household lost their job.
Meanwhile, sixteen per cent say they would struggle financially if interest rates caused their mortgage payments to increase (which could be the reason an increasing number of families will raise their kids in apartments and condos).
So if you’re feeling particularly shallow-pocketed this holiday season, you’re definitely not alone.
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