This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Homeowners Indicate They Are More Comfortable With Debt Than Their Parents Were, Manulife Bank Of Canada Survey Shows

TSX/NYSE/PSE: MFC SEHK:945 

  • Homeowners in their fifties are almost five times as likely to say they are more comfortable with debt than their parents.
  • Those whose parents taught them a lot about debt management are twice as likely to report their debt is in good or great shape
  • Eight in 10 homeowners indicate being or becoming debt-free among top financial priorities.
  • Almost half of homeowners surveyed would consider themselves to be debt-free even if they have mortgage debt outstanding.

WATERLOO, ON, June 17, 2014 /PRNewswire/ - Four in 10 homeowners (39 per cent) indicate they're more comfortable with debt compared to their parents, versus just one in eight (13 per cent) who feel they're less comfortable.  The perceived gap in comfort level was greatest among homeowners in their fifties, who were five times more likely to indicate a greater degree of comfort than their parents, compared to those in their twenties and thirties, who were only twice as likely.

The survey suggests that homeowners are also becoming more comfortable discussing debt within the household, with three in 10 (28 per cent) indicating they communicate more than their parents, compared to just eight per cent who feel they communicate less.  Once again, homeowners in their fifties were most likely to feel they differ from their parents.  This group was five times as likely to feel they're better communicators than their parents, compared to those in their twenties, who were only slightly more likely.

"Canadians are becoming increasingly comfortable with taking on debt and discussing that debt with those close to them," says Jason Daly, VP Product, Marketing & Business Development, Manulife Bank of Canada. "This could be a result of our current low interest rate environment, which makes debt management seem less intimidating than it was in the '80s and 90's, when rates were much higher."

The question of "what is debt?" also appears to be in flux.  While almost half (45 per cent) of homeowners surveyed would consider themselves to be debt-free even if they have mortgage debt outstanding, this varies significantly by age group.  Fully two thirds of homeowners in their twenties (68 per cent) don't appear to include their mortgage when they think about their debt, compared to 60 per cent of those in their 30's, 48 per cent of those in their 40's and just 29 per cent of those in their 50's.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,055.87 -116.81 -0.68%
S&P 500 1,982.77 -11.52 -0.58%
NASDAQ 4,508.6880 -19.0010 -0.42%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs