Manulife Bank of Canada debt survey finds 40% of homeowners made an extra mortgage payment in the past year.
M2 EQUITYBITES-June 19, 2015-Manulife Bank of Canada debt survey finds 40% of homeowners made an extra mortgage payment in the past year
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Manulife Bank of Canada (TSX: MFC) (NYSE: MFC) (PSE: MFC) (SEHK:945) said it has released a survey of homeowners that finds four in ten either made extra mortgage payments or increased the amount of their mortgage payment in the past year.
The survey indicated 56 percent Canadian homeowners took steps to reduce debt in the past year, an increase of five percent over the previous years. Eighty percent say being debt free is a financial priority.
Homeowners with a mortgage carry an average of USD190,000 in mortgage debt. Four in 10 would struggle to make their mortgage payment within three months of a job loss.
Many homeowners have to choose between debt repayment and contributing to retirement savings, and one in six would struggle to make a regular mortgage payment within one month of a job loss Eight in 10 are willing to cut back on discretionary spending to reduce debt, but only two percent are willing to cut back on phone or Internet services.
More than a third of homeowners surveyed would encounter financial difficulty if their mortgage payment increased by just 10 percent. A further 15 percent of homeowners said they could not absorb any increase in their payment.
Manulife Bank was the first federally regulated bank opened by an insurance company in Canada. It is Canada's first advisor-based bank, it has successfully grown to more than USD21 billion in assets and serves clients across Canada.
Manulife is a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. The company operates as John Hancock in the US and as Manulife in other parts of the world.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Jun 19, 2015|
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