More than 40% of Canadian homeowners aged 30 -39 expect to be debt-free by the end of their forties, according to Manulife Bank of Canada’s quarterly Debt Freedom Survey.
“When people buy their first home, they have the best of intentions to pay off their mortgage and other loans, and are optimistic about their financial future,” said Doug Conick, President and CEO of Manulife Bank of Canada. “However, even carefully laid financial plans can be thrown off track by unexpected life expenses, such as home repairs, family illness, or job loss. Debt-freedom is possible, but it requires a commitment to financial discipline, and for many people, some professional advice on how to plan finances for the long term.”
This survey polled 1,000 Canadian homeowners between ages 30 to 59 with household income of more than $50,000.
“When people buy their first home, they have the best of intentions to pay off their mortgage and other loans, and are optimistic about their financial future,” said Doug Conick, President and CEO of Manulife Bank of Canada. “However, even carefully laid financial plans can be thrown off track by unexpected life expenses, such as home repairs, family illness, or job loss. Debt-freedom is possible, but it requires a commitment to financial discipline, and for many people, some professional advice on how to plan finances for the long term.” This survey polled 1,000 Canadian homeowners between ages 30 to 59 with household income of more than $50,000.
Highlights from Debt Survey:
• Approximately 70% of respondents rank being debt-free among their top financial priorities.
• 64% of those aged 50-59 either expect to carry debt into their 60s, don’t know when they’ll be debt-free, or expect they won’t ever be debt-free
• 71% of those in their 50s manage their debt and day-to-day finances with no outside advice, compared with 63 per cent for the 40-49 age group and 57% for the 30-39 group
• A third of respondents believe their knowledge of personal debt management to be “above” or “well-above average”, compared with just 10 per cent who characterize their knowledge as “below average” or “well-below average”
• Those 30-39 have 3.8 separate loans outstanding, compared with 3.1 for those in their 40s, and 2.7 for the 50-59-year-olds.
• Among common financial priorities, all groups expressed the lowest level of satisfaction with their level of debt and the highest level of satisfaction with their ability to manage day-to-day expenses.
• 41% of all respondents report having at least one credit card with a balance that isn‟t paid in full each month
• 76% of all respondents report having mortgage debt outstanding, including 57% of those in the 50-59 age category
• The number of loans outstanding decreases over time, however even those in the 50-59 age group have, on average, nearly three separate loans outstanding
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