More Canadians worried about defaulting on their mortgage or major loan payment, says poll

financialpost.com:

The number of Canadians worried about defaulting on a mortgage or major loan payment rose in February, according to a long-running survey that tracks people’s financial outlooks.

Eighteen per cent of those surveyed in February by Maru Public Opinion said it was very likely they would default on a mortgage payment or loan payment over the next two months, up two percentage points from January.

In a sign of further financial stress, 11 per cent of respondents said they were very likely to declare bankruptcy in the next two months, up one percentage point.

The poll reflects recent data from the Office of the Superintendent of Bankruptcy that showed consumer bankruptcies in January rose 17.9 per cent from December and 18 per cent from the year before. Consumer proposals, which are a renegotiation of terms, rose 19.7 per cent month over month and 25 per cent from January a year ago.

Rising defaults and bankruptcies appear to be the next stage in Canadians’ struggle to cope with the higher interest rates and cost of living following the pandemic.

“A lot of people are feeling massive pressure,” John Wright, executive vice-president of Maru Public Opinion, said.

The default result stood at 10 per cent when Maru launched its poll in July 2020, and fell to eight per cent in May 2022.

The February survey found that younger people aged 18 to 34 now make up 40 per cent of the group in danger of defaulting, while those earning less than $50,000 accounted for 26 per cent, up six percentage points from January.

“There is a significant amount of pressure that has escalated for the 18-34-year-old group,” Wright said.

Ontario had the highest share of people at risk of default among the provinces, rising four percentage points to 22 per