The pandemic has left many feeling their financial targets are unachievable
According to the results of a new survey from Manulife Bank, a large number of Canadians are starting to worry that the financial impact of the COVID-19 pandemic is causing their dreams of home ownership to slip out of reach.
The bank recently polled 2,001 Canadians in all provinces with household incomes of more than $40,000 for its latest debt survey and found that more than a third of respondents (36%) worry significantly about saving for a home, suggesting that many are either priced-out or on the verge of being priced-out of the market.
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The survey also revealed that 35% of respondents admit to being financially unprepared for the pandemic. Nearly three-quarters (74%) acknowledged that their financial situation had been impacted as a result of the pandemic, while more than two-thirds (69%) within that group say the impact has been negative overall.
Of those respondents, 42% think it may take them over a year to recover their pre-COVID-19 level of stability.
Unsurprisingly, the survey also found that financial anxiety is taking a toll on the mental well-being of many Canadians, with almost half (46%) of indebted respondents saying debt is having a negative effect on their mental health.
“Debt can negatively impact mental health and leave Canadians feeling like their financial goals are unachievable,” said Rick Lunny, president and chief executive officer of Manulife Bank. “The pandemic has made that even more pronounced. It’s so important to have financial flexibility, especially when one looks at purchasing a home – it's easy to feel stressed. Financial conversations are essential to identify opportunities, what matters most and help you stay on track, no matter the financial environment.”
