Poll shows 55% of Canadian homeowners are in need of extra income

According to the recent survey conducted by Leger for BNN Bloomberg and RATEDOTCA, almost 40% of Canadian homeowners worry about their finances, and fewer than half can afford an increase in their monthly costs by more than $200.

The poll asked 1,513 Canadians about their finances amid growing interest rates and the highest inflation rate in more than 30 years. The survey conducted between May 13 and May 15, 2022, focused on homeowners, with 62% of respondents having their own property.

As you know, homeowners, especially those who purchased real estate before the pandemic, have benefitted from a significant equity increase during the previous 10 years. CREA says the average home price in Canada reached a record $816,720 in February. Although the prices have dropped slightly since then, it’s still almost twice more than the $468,350 average real estate price reported in February 2019.

The survey shows that 39% of Canadian homeowners worry about their finances, including 18% who are very concerned. Among the concerned respondents, half noted they purchased their home in the past two years. 

Respondents older than 55 were the least likely to be concerned about their finances: 32% of that cohort were either concerned or very concerned. Those aged 35-54 showed the highest level of anxiety:  23% of them are very concerned about their finances, and 47% shows certain level of concern.

The 18-34 cohort was in the middle, with 39% showing some concern.

Overall, 61% of Canadian homeowners said they don’t worry about their finances at all, which means that almost two-in-three Canadians believe they are in a good financial state. There could be several reasons for that and one of them is the fact that unemployment rate is already near a record low after the recovery in the Canadian economy following the 2020 recession caused by lockdowns.

The poll says Canadian homeowners don’t have much space for comfortable costs changes, with 74% of them saying they could comfortably afford an increase in monthly costs by not more than $200.

Meanwhile, only 45% said they could afford a $201-$500 hike, and 19% could withstand a $501-$1,000 gain. Only 9% noted they could afford a rise by $1,000.

 

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