38 per cent of Canadians with a mortgage have financial difficulty

A new report from Manulife Bank reveals that many Canadians are living paycheque-to-paycheque including a large percentage of those with a mortgage.

The survey found that almost half of Canadian homeowners would not have money to cover a financial emergency with millennials the most likely to have limited reserves.

Among those with a mortgage, 38 per cent said they have some difficulty paying their mortgage, utilities and maintenance costs.

On average, Canadian homeowners with a mortgage reported $174,000 in mortgage debt, and more than one quarter of their net income goes towards making mortgage payments. However, almost three in 10 homeowners spend more than 30 per cent of their net income on mortgage payments.

While a third of mortgage holders would struggle within 3 months if the main income earner in their household were to lose their job, the same percentage said they could cope with a 10 per cent rise in their mortgage payments.

Forty per cent said they could withstand a 20 per cent rise in mortgage payments but for 1 in 6 any increase would be a problem.
 

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