A new survey by Manulife Bank of Canada has revealed that a large number of Canadian homeowners are running desperately short of funds when it comes to covering the expenses that come with owning a home.
40% have found themselves so short of cash, they’ve been forced to accumulate debt, cash in their savings, or turn to family for financial assistance.
Rising house prices are being highlighted as the culprit behind this issue. In fact, 38% of people carrying a mortgage view their local housing market to be unaffordable (yet they bought anyway!).
When short, 1/3 turned to credit cards, with another 1/3 turning to a line of credit, while 15% looked to family and 10% used their RRSPs or liquidated investments.
Three-quarters of respondents believe they’re financially well prepared for a major unexpected expense, like an automobile or home repair!
If you came up short one month, would you ask family or friends for money, or would you rather descend into debt?
Read the whole story HERE in the Globe & Mail.