Nearly two out of three working Canadians said that they are "concerned" about housing costs, according to the National Payroll Institute
More than half (54%) of working Canadians are forced to allocate a third or more of their household incomes to cover their total monthly housing costs, according to the National Payroll Institute.
In its recent Survey of Working Canadians, the Institute found that 62% of those employed reported being “concerned” about housing costs, while 58% said that their spending on housing has increased over the past year.
Among the homeowners in the respondents, 28% said that they are “concerned” about the value of their assets in the current economic environment.
The trend is a symptom of the “perfect storm” that more and more households are finding themselves in, the Institute said.
“The contributing factors to financial stress are becoming more challenging than ever for Canadians to overcome,” said Peter Tzanetakis, president of the National Payroll Institute.
“With interest rates, inflation, and the cost of living all continuing to rise, for many working Canadians navigating these factors have negatively impacted their financial wellness, and they need to take immediate and urgent action to keep from being overcome.”
The Office of the Superintendent of Financial Institutions (OSFI), has decided not to tighten regulatory limits on debt-service coverage.
— Canadian Mortgage Professional Magazine (@CMPmagazine) October 17, 2023
Read more: https://t.co/pngH6ivBl6#mortgageindustry #financialregulation #mortgage
Canadians are finding it harder to save
Once flush with pandemic-era savings, many Canadians are now wrestling with significant financial challenges: The study found that 63% of households spend all of their net pay to service their bills, with 30% spending even more than their net pay.
The Institute said that for many Canadians, saving up money has become more difficult than at any point in the past decade. Approximately 66% of financially stressed Canadians reported needing to live paycheque to paycheque, while 50% said that they are overwhelmed by debt.
“This continues a trend that began in 2021 after an initial decline in 2020 when pandemic-induced lockdowns forced Canadians to save — which, with the benefit of hindsight, turns out to have actually been the calm before the storm,” the Institute said.
