IG Wealth Management Mortgage Study: Most Canadians Are Not Receiving the Financial Advice They Need When Getting a Mortgage

  • More than three-quarters (78 per cent) of Canadians believe buying a house is the most important piece to be integrated into their financial plan
  • However, less than half (44 per cent) consulted with a financial advisor before getting a mortgage
  • Only two-fifths (42 per cent) have critical illness or disability insurance to protect their mortgage

WINNIPEG, MB – May 8, 2023 – According to a new study from IG Wealth Management (IG), most Canadians believe home ownership should be a central part of their financial plan. However, less than a third of Canadians with a mortgage say their financial advisor provided a great deal of advice on how their mortgage fits into their financial plan. This despite the fact that their mortgage loan is often among their largest debts and their mortgage payments are likely their largest monthly expense. 

The study, conducted in partnership with Pollara Strategic Insights, found that:

  • The majority (78 per cent) of Canadians believe home ownership is the most important part of their financial plan;
  • However, less than one-third (29 per cent) said their financial advisor provided a great deal of advice on how their mortgage could fit within their financial plan.

“In today’s climate, with rising rates and real estate market shifts that are impacting many areas of the country, mortgages are likely one of the largest debts for many Canadians – and their house their largest asset,” said Alana Riley, Head of Mortgage, Insurance and Banking at IG Wealth Management. “It’s encouraging that Canadians appreciate the importance of including their home in their overall financial plan. However, what’s surprising is that so many are taking on this multi-hundred-thousand-dollar debt without discussing its impact to their overall financial plan or developing strategies to optimize their mortgage with their advisor. A financial plan that integrates a mortgage can improve cash flow, reduce high-interest debt and help expedite the rate at which the mortgage is paid off.”

Safeguarding Your Mortgage and Maximizing Your Estate

Ms. Riley added that, contrary to what many believe, getting the best interest rate is not the only consideration Canadians should have when choosing a mortgage or renewing one. Having the right insurance is of equal importance, as it offers financial protection for your mortgage in the event of unforeseen circumstances.

According to the study:

  • Only one-fifth (20 per cent) of Canadians are very knowledgeable about the best insurance to get for their mortgage; and
  • Less than half (45 per cent) understand how insurance can be used to maximize the value of one’s estate.

“As life expectancy rises, Canadians are carrying larger mortgages for longer, making it increasingly important to consider critical illness and disability insurance. These kinds of insurance policies protect your ability to make mortgage payments and help you and your loved ones remain in the home should an unexpected event happen.  It’s crucial to seek guidance from a financial advisor who can help protect your home and help you face the future with confidence.”

“The right insurance can also help you with your secondary properties, whether it’s recreational or investment. It helps fund tax liabilities so you can maximize the value of what you pass on to loved ones.   To help ensure that you and your family are protected when it comes to your home and other properties, Canadians should build a holistic financial plan that integrates mortgage and insurance considerations – all under the same roof,” concluded Ms. Riley

About the Pollara Study

This study was conducted with an online sample of 1,001 Canadians aged 18 years or above who hold a mortgage and was conducted between April 12th, 2023 and April 17th, 2023.  Results of the study were weighted by region and gender to be representative of the population as a whole.  The margin of error on a probability sample of this size would be +/- 3.1%, 19 times out of 20.

About IG Wealth Management

Founded in 1926, IG Wealth Management is a national leader in delivering personalized financial solutions to Canadians through a network of advisors located across Canada. In addition to an exclusive family of mutual funds and other investment vehicles, IG offers a wide range of other financial services. IG Wealth Management has $115.9 billion in assets under advisement as of March 31, 2023, and is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's leading diversified wealth and asset management companies with approximately $260.4 billion in total assets under management and advisement as of March 31, 2023.

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