If your financial situation suddenly changed, would you still be able to meet all your monetary obligations?
A new Manulife Bank poll finds not all Canadians would be able to.
The poll finds 24% of homeowners don’t know how much they have accumulated in an emergency fund, 14% don’t have such a fund, and 9% say they would only have access to $1,000 or less.
The remainder of those surveyed say they have up to $10,000 stashed away, with the overall average of $5,000.
About 46% say they would have a hard time making their monthly mortgage payments, if the primary income earner lost their job. 16% admit they have would have trouble if interest rates were to rise.
The average homeowner is carrying about $174,000 in mortgage debt.
“It’s undoubtedly stressful living paycheque-to-paycheque. If you don’t have extra cash at the end of the month, it’s very difficult to build a rainy-day account. For those who find themselves in this situation – a good place to start is working with an advisor to create a budget. Many people are surprised at how much of their money is going toward things that they don’t consider that important.” – Rick Lunny, President and Chief Executive Officer, Manulife Bank of Canada.