Getting the right ideas for savings and budgeting can be hard for many individuals, and mortgage payments may be adversely affected due to recent trends.
The overall level of Canadians who are trying to pay off their mortgages more quickly slid to 55 percent this year from the previous level of 68 percent, according to a report from CIBC. With this in mind, the average age that Canadians think they will retire reached 58.
"A mortgage is the largest debt most Canadians will take on in their lifetime, and being mortgage-free is an important goal for many," said Barry Gollom, vice president of secured lending and product policy at CIBC. "With current low interest rates, this may be an opportune time to make progress against your mortgage – even a few small changes can make a big difference in the length of time it takes to pay off your mortgage and the amount you pay in interest charges."
Approximately one-third of those polled picked up the rate of payments, the report showed. One year earlier, this level was at 42 percent. Another 28 percent had the overall level of payments increase, a bit lower than in 2013, when it was 30 percent. A total of 18 percent paid in a lump sum or made a prepayment, an improvement from the previous year's 15 percent.
Many Canadians trying to save
Individuals are also looking to improve their savings situations in order to better prepare for the future. According to a separate report from CIBC, nearly 60 percent of Canadians are saving for something beyond retirement. One-quarter of those polled said that this was to go on vacation, while 17 percent specified creating an emergency fund. Another 14 percent wanted to improve their home.
"Our CIBC poll shows that Canadians want to save but they don't always have a plan on how to achieve their specific savings goals," said Veni Iozzo, senior vice president of deposits and client solutions at CIBC. "Knowing what you're saving for and how much you need is a good first step, but having a financial plan to determine how much you can put aside and how often is important to help reach your goal faster."
More than half of those polled noted that they put money away routinely to prepare for these events, the report added.