Millennials in Ontario are inadequately insured and unaware of mortgage costs

By Andrew Rickard | November 28 2016 01:30PM

Photo: Freepik

More than half of the Millennials in Ontario do not have a individual insurance policy on their mortgages.

The Financial Services Commission of Ontario (FSCO) recently hired Environics Research to discover how much Millennials know about mortgages. The poll found that 47% of those between the ages of 25 to 34 were "not very" or "not at all" confident about the subject, and only 12% described themselves as "very confident" when dealing with banks and other lenders.

The survey reveals that just 22% of the Millennials who are planning to take out a mortgage know they will have to make a 5% down payment. When asked about the costs associated with buying property, 39% were able to name legal fees, but only 24% cited the Land Transfer Tax, and just 8% thought of home insurance. Overall, 25% of the respondents admitted they didn't know what the closing costs might be.

Among those who already have mortgages, more than half are not prepared to deal with unexpected events or costs: only 42% say they have six months' worth of savings to deal with an emergency such as job loss, and just 43% have taken out a life, disability or critical illness insurance policy on the mortgage.

The online survey was conducted in late October, and quotas were set by region, age, and gender to obtain a representative sample.