By Keith Martin, Executive Director, Canadian Association of Financial Institutions in Insurance (CAFII)
For many Canadians, owning a home represents stability, security and a step toward long-term financial wellbeing. But new national research shows that behind the scenes, a growing number of homeowners feel anything but secure.
CAFII partnered with Pollara Strategic Insights to survey more than 3,000 Canadians with a mortgage or a home equity line of credit (HELOC). The findings offer an important reality check on how prepared, or unprepared, many Canadian households are for a sudden change in income.
Many Canadians Could Only Manage for a Few Months
One of the clearest signals in the research is just how thin the financial margin is for many homeowners.
Half of those surveyed said they could only maintain their current lifestyle for less than six months if their primary income stopped. Half also said they would have serious problems paying their bills if the main income earner in their household could not work.
The survey suggests that a large number of Canadians are only a few disrupted paycheques away from difficult decisions about mortgage payments, credit card balances, groceries, or childcare.
Debt Levels Add to the Pressure
Homeownership often comes with significant debt, but the study shows just how heavy these obligations are for many families:
- An average mortgage of about $221,000
- An average HELOC balance of around $54,000
- Nearly $40,000 in additional debts such as credit cards, car loans or personal loans
With rising living costs, interest rate fluctuations and economic uncertainty, it’s no surprise that 44% of homeowners say current economic conditions are making their finances worse.
Financial Stress Reaches Far Beyond Lower-Income Households
A key insight from the study is that financial vulnerability isn’t limited to those earning less.
Even homeowners with household incomes between $120,000 and $250,000 report similar pressures:
- Difficulty saving consistently
- Managing multiple types of debt
- Worrying about job loss
- Unsure how long they could manage without income
Higher income does not always translate into higher financial resilience. Many Canadians, regardless of income, are navigating the same financial uncertainties.
A Gap Between Worry and Preparation
Perhaps the most concerning finding is the disconnect between homeowners’ concerns and their level of preparedness.
Many people fear the impact of a sudden job loss or illness, yet:
- Only about one-third feel very knowledgeable about planning for the future
- Many don’t fully understand what their current insurance covers
- A significant number don’t know how long their life insurance would last if it were needed
This lack of clarity increases stress and can leave families more exposed to risk than they realize.
What Homeowners Can Do
While no one can predict the future, small, practical steps can help Canadians strengthen their financial safety net:
- Know your numbers: Take stock of your total debt, monthly payments, income sources and how long savings could support your household if income suddenly changed.
- Review your safety net: This includes emergency savings, employer benefits and any insurance you already have, such as life, disability, job loss or others.
- Ask clear, simple questions: If you’re unsure what your insurance covers, ask your financial institution or advisor to explain it in plain language, using real scenarios.
- Map out a “what if” plan: Thinking ahead about how you would handle a job loss, illness or unexpected expense can help reduce anxiety and clarify where your gaps are.
Moving Toward Greater Financial Confidence
At CAFII, we believe that informed decision-making starts with clear, accessible information. Financial vulnerability isn’t a personal failing, it’s often the result of rising costs, unpredictable economic conditions and the realities of modern life.
By shining a light on these trends, the Pollara study aims to help Canadians better understand their situation, ask the right questions and feel more confident about protecting their households.
