According to a new survey conducted by IPSOS for Toronto-Dominion Bank, 40 per cent of Canadians (about 10 million) have discordant and/or unstable month-to-month income over the past year, with incomes shifting by as much as 25 per cent for an estimated 3.3 million working adults.
TD Bank CEO and President Bharat Masrani told RCI that their findings suggest that impact is both pervasive and profound, making it hard for many people to live the life they want today, let alone plan for and feel confident about their future.
Prosper Canada CEO of national charity Elizabeth Mulholland said that these numbers only confirm the clamant need for a “sea change” in the availability of opportunities for financial stability among Canadian households.
Mulholland noted that rising income volubility appears to be making it far more challenging for households at all income levels to manage financially, but Canadians with lower incomes are really feeling this most sharply.
Adding to that, a study from Manulife Bank of Canada revealed an 11 per cent increase in mortgage debt last year, up to $201000. About half of those surveyed (51 per cent) had $5000 or less allocated for financial emergencies, while 20 per cent have no funds set aside at all.
For 70 per cent of those surveyed, an increase of 10 per cent in mortgage payments, which could be brought about from as little as a 1 per cent uptick in current interest rate levels, will be impossible for them to pay.
“The truth about debt in Canada is that many homeowners are not prepared to adjust to rising interest rates, unforeseen expenses or interruption in their income”, Manuife Bank of Canada president and CEO Rick Lunny said.