Almost half of Canadian homeowners have no emergency money, study says

by | Nov 24, 2016 | News

Emergency savings are meant for last minute resorts but what if there are no savings?

Emergency savings are meant for last minute resorts but what if there are no savings?

By: Shaunte Sterling

A Manulife Bank poll suggests that nearly half of Canadian homeowners wouldn’t be properly prepared for emergency expenses in situations like a job loss.

The newly released survey found that more than one in three millennials feel mortgage rates are too high.

Bailey Herron of Georgetown is a recent graduate who is worried about her future house.

“Honestly the cost of living in general is ridiculous. I’m going to have to consider buying a house where there is cheaper living,” says Herron.

At the age of 20 she was juggling paying rent while working as a vet assistant. Herron is considering purchasing a house where the cost of living is cheaper.

“Living on my own I found it extremely hard to save, [it was] paycheck to paycheck with rent and other bills.” Herron expresses that she can’t imagine how it will be when she is paying off a mortgage on house.

The survey included that 24 per cent of those surveyed don’t know how much is in their emergency account.

“It is very discouraging to hear those facts. It’s kind of sad to see the way people live and struggle day-to-day. But everyone’s situation is different [we] just have to work hard for what you want at the end of the day,” says Herron.

The age group that was surveyed was between 20-29.

Manulife suggests that many Canadians could save money and become debt-free if Canadians managed debt effectively.

Manulife Bank Spokesperson Jason Daly says it’s really important to get a read on how Canadians are doing.

“Millennials have only experienced being homeowners in the past 5-10 years with a record low interest rate.”

Daly says it’s important to “look at the amount of debt [one] is taking on and making sure that they’re cautious about the future and if rates do rise they’re prepared.”

Credit Canada Debt Solutions is a charitable non-profit organization that works towards helping the public with financial stress and providing outreach to communities.

‘Difficult to get a house’

CEO Laurie Campbell says the release of the new study affects the steady flow of clients that visit them.

“We have a very high cost housing market which makes it difficult to millennials to get a house,” says Campbell.

She mentions that having credit issues is one thing but working without having a savings fund could be the tip of the iceberg when it comes to having financial problems.

“[Millennials] are going to have to be very careful with how they spend their money and use their credit in order to overcome these obstacles.”