According to a recent study carried out by IPSOS for Toronto-Dominion Band showed that almost about 40% of Canadians (about 10 million) witnessed irregular and or unstable month-to-month income over the previous year, with income shift by as much as 25% for an estimated 3.3million adults working.
“Our discoveries suggest that effect is both common and intense making it difficult for many to live the kind of life they want today. Let alone plan for and feel confident about what holds for them tomorrow,” TD Back Group CEO and President Bharat Masrani told RCI.
Prosper Canada CEO of national charity Elizabeth Mulholland stated that these figures only confirm the urgent need for a “sea change” in the availability of opportunities for financial stability among households in Canada.
Increasing income volatility happens to be making it very challenging for households at all income levels to manage financially, but lower income earners in Canada are really feeling this greatly,” Mulholland stated.
“Furthermore, a survey by Manulife Bank of Canada disclosed an 11% rise in mortgage debts last year, up to $201.000. About half of those targeted (51%) had $5.000 or less set aside for financial emergencies, while no fund is allocated at all for about 20%.
Fully 70% of those targeted said a 10% rise in mortgage payment which could emerge from as small as a 1% slight upward trend in current interest rates level will prove impossible for them to pay.
“In Canada, the truth about debts is that many house owners are not ready to adjust to increasing interest rates, unexpected expenditures or interruption in their income,” Manulife Bank of Canada President and CEO Rick Lunny said.