Canadian homeowners are in the best shape when it comes to financial fitness, according to a survey conducted by Genworth Financial Mortgage Insurance Company Canada.
The survey found 65% of homeowners pay off their credit card balances in full each month compared to 48% of non-homeowners.
Those more likely to pay off their credit card balance include those aged 60+ (67%), those with incomes over $100,000 (75%), and those who own their homes with no mortgage (74%).
Plus, of homeowners who are still managing mortgages, 25% made a lump sum payment or accelerated their mortgage payments in the past year, while 44% were able to pay all of their bills plus save money in the past year.
Mortgage holders more likely to have accelerated or made a lump-sum payment include those with incomes between $75,000 and $99,000 (32%) or more than $100,000 (30%), and women more than men (26% vs. 21%).
The findings suggest a strong correlation between homeownership and financial fitness, says Peter Vukanovich, president and chief operating officer of Genworth Financial Canada.
“Homeownership is an achievable goal for those who are prepared,” says Vukanovich. “It helps people focus on their financial situation and get their fiscal house in order.”
Compared to the same survey from 2007, when the economy was booming, Canadians are even more likely now to say their financial fitness is good — 55% this year versus 50% three years ago.
More men than women report being in good shape (60% compared to 51%), the majority — 69% — are university graduates and 65% have paid off their mortgages.
“A mortgage is easier to manage when people have good personal finance skills,” says Henrietta Ross, chief executive officer of CACCS.
Only 22% of recent buyers or those intending to a buy a home say they sought preapproval for a mortgage, with women, at 25%, more likely to seek pre-approval than men, at 19%.
Almost half of those surveyed who bought a home in the last year made down-payments of 20% or more.
The report’s authors conclude Canadians who report their financial fitness as being poor or very poor (11%) are more likely to be renters, while those who consider their financial situation to be good or better are much more likely to own a home and own without a mortgage.
calgarysun.com