Only 39 per cent of Canadians include mortgages in their monthly budgets, even though it’s one of their highest expenses, according to a recent online survey by IG Wealth Management, a financial advisory firm. A survey of 1,590 adults between July 28 and Aug. 8 found that budgeting is popular among Canadians, with 67 per cent of respondents saying budgets are useful for managing their monthly cash flow. Common budgeted expenses included groceries (90 percent), gas (72 percent), and entertainment and savings (54 percent each). “In many cases, monthly mortgage payments, along with taxes, represent one of the largest monthly expenses Canadians face,” said Alana Riley, head of mortgage, insurance and banking at IG Wealth Management. “So while it’s encouraging that so many reported having a monthly budget, it only provides a partial snapshot of their overall cash flow situation if they don’t factor in their mortgage.” Home loans make up 35 per cent of monthly expenses for the one-third of Canadians who have them, according to the survey. Amid high inflation, with another rate hike expected in September, the cost of living has skyrocketed for nearly all Canadians. The latest IG survey found that 60 per cent of all Canadians are concerned about cutting costs to reduce their expenses, while 43 per cent are not sure they will be able to cover all their monthly bills. Only 45 percent believe they will be mortgage-free when they retire. The research echoed the findings of another study in August, which found that one in four Canadians admitted to taking on debt to cover their expenses, citing paying bills and meeting living expenses among the main reasons. “The combination of rising interest rates and inflation is causing stress for many Canadians and in some cases tense dinner conversations across the country,” Riley said. “The value of advice and financial planning has never been more important.”
