Homeowners are more financially fit

Homeowners are in the best shape when it comes to financial fitness in Canada. Sixty five per cent of homeowners pay off their credit card balances each month (vs. 48 per cent of non-homeowners). Furthermore, a quarter of those homeowners with mortgages have managed to make a lump sum payment or accelerate their mortgage payments in the past year, according to a survey sponsored by Genworth Financial Mortgage Insurance Company Canada.

Almost half (44 per cent) of homeowners were able to pay all of their bills and save some money in the past year suggesting a strong correlation between homeownership and financial fitness.

“Homeownership is an achievable goal for those who are prepared,” said Peter Vukanovich, President and Chief Operating Officer of Genworth Financial Canada, in a press release. “Homeownership helps people focus on their financial situation and get their fiscal house in order.”

The Financial Fitness survey was conducted in conjunction with the Canadian Association of Credit Counselling Services (“CACCS”). Compared to the same survey undertaken in 2007 when the economy was booming, Canadians are even more likely now to say their financial fitness is good (55 per cent vs. 50 per cent).

“A mortgage is easier to manage when people have good personal finance skills,” said Henrietta Ross, Chief Executive Officer of CACCS. “But there is room to improve personal finance skills for many Canadians. Our certified Credit Counsellors and qualified Financial Coaches can help people get on track with their financial fitness so they can reach their important life goals, such as homeownership.”

Other findings of the survey:

• 49 per cent of homeowners made down payments of 20 per cent or more on their purchase;
• 13 per cent of homeowners say they are in great financial shape;
• 12 per cent of homeowners said they have requested a credit report in the past 12 months.