Six in ten Canadians lack emergency savings, raising concerns for mortgage and lending sectors
Canadians are facing unprecedented financial strain, with nearly six in ten reporting they lack sufficient savings for unexpected expenses, according to new polling from RBC.
The data paints a concerning picture for households already grappling with elevated borrowing costs and housing affordability challenges.
Half of surveyed Canadians said they are spending all their income on essential bills and expenses, while 48% reported they can no longer maintain their standard of living.
"The value of having – and sticking to – a good financial plan with a long-term approach helps get through any periods of turmoil," said Craig Bannon, national director of regional financial planning support at RBC.
Parents hesitant on financial guidance despite knowledge gaps
The anxiety extends to the next generation. Nearly six in ten Canadian parents said they don't feel fully confident having financial conversations with their children, while 57% are delaying these discussions until key life moments or until children ask.
Four in ten parents lack resources or knowledge to help their children prepare for financial independence.
Meanwhile, young Canadians are rejecting their parents' financial playbook. A Simplii Financial poll found 34% of Gen Z believe older generations' advice no longer works.
Nearly half of 18-to-34-year-olds said home-buying guidance doesn't apply to them, while more than a third question traditional views on careers and income.
Yet experts emphasize that parents don't need to be experts themselves. "They just need to lean into trusted resources to give themselves a starting point, and the confidence, to get these conversations underway," said Lucianna Adragna, vice president of client segments at RBC.
"What matters most is to begin talking about money early and often."
Fraud concerns compound financial stress
Some 86% of Canadians said it's becoming harder to recognize scams, while two-thirds are experiencing fraud fatigue from constant vigilance. Nearly one-third admitted they've let their guard down.
Meanwhile, small business owners are adapting by pivoting strategies. Sixty-one percent have done so in the past year, while 40% of parents overspent during back-to-school shopping to avoid disappointing their children, according to separate polling by Mydoh.
On the other hand, BMO’s Real Financial Progress Index revealed that most Canadians entered the holiday season spending less and changing how they shop.
Sixty-one percent adjusted their plans because of rising prices and economic pressures. Of those, 37% tried to buy gifts less affected by tariffs, such as choosing goods made in Canada.
Rising financial anxiety, combined with reduced emergency savings and hesitation around financial planning, may signal headwinds for mortgage renewals and refinancing activity in coming quarters.
Mortgage professionals should anticipate increased borrower scrutiny around affordability and payment sustainability.
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