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In the past year, only nine per cent of Canadians have delayed paying their mortgage or rent but of those, over 40 per cent face significant income volatility.

Of that 40 per cent, 18 and 23 per cent of Canadians experienced high and very high income uncertainty, respectively, according to a new report from TD published today.

In collaboration with market research company Ipsos, TD surveyed 3,000 adult Canadians about their financial health in relation to the income volatility they experience.

Income volatility is described as the extent to which one’s income is consistent, stable and the percentage at which one’s income varies from month to month.

With many Canadians struggling with unstable or inconsistent income on a monthly basis, TD AVP of Customer Insight, Jennifer Lang, says income volatility is an emerging issue.

“In fact, our numbers are actually quite in line with what we’ve seen in other studies in the US and that was quite a shocking finding for us,” Lang tells BuzzBuzzNews.

To determine the impact income volatility has on Canadian’s financial health, TD analyzed how income fluctuation correlates with spending, saving, borrowing and planning behaviours.

It appears a majority of Canadians are not struggling to pay their mortgage or rent on time, even though the country’s household debt to income ratio has been accelerating this year, according to Statistics Canada.

Ninety-one percent of Canadians had no issues paying their rent and mortgage in the past year but nine percent delayed a payment at least once, which Lang says is concerning.

In addition, there are certain sub-groups of the population that are experiencing high or very high income volatility who had the most difficulty paying their housing costs on time, including Alberta residents, younger Millennials and Gen X men, says Lang.

When factoring in all behavioural aspects, nearly 57 per cent of Canadians report positive financial health.

However, according to the report, most Canadians feel some level of stress regarding their personal finances and stress levels are significantly greater for those with higher income volatility.

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