Ratehub.ca survey: Canadians have optimistic view of 2025 finances
There’s been plenty of doom and gloom spouted lately about the Canadian economy. Various data reports have pointed to slowing GDP, a weakening loonie, and stagnating labour market – all in the shadow of rising tariff threats and uncertainty from the US, our nation’s largest trading partner.
At the consumer level, Canadians continue to be squeezed by a high cost of living; while the pace of inflation growth slowed considerably in 2024, prices for everyday goods remain elevated compared to recent years. Groceries, for example, are nearly 21% more costly than they were in 2021, according to Statistics Canada, while homeowners are still paying 15% more on mortgage interest costs year over year. As well, GDP on a per-capita basis – which measures the effects of a slowing economy on individuals – has dropped for the sixth quarter in a row, meaning many Canadians are experiencing their own “me-cessions”, even if Canada isn’t officially in a recession by definition.
You’d think this would leave Canadian consumers despondent about their future financial aspects – but a recent survey conducted by Ratehub.ca reveals respondents are optimistic about their 2025 finances, and intend to continue making smart financial decisions.
The survey, which polled 1,256 Canadians on their financial habits and outlooks, found that only 16% anticipate their financial situation to worsen in 2025; 34% expect to see it improve over the coming year, while 44% don’t anticipate any change.
Savings, debt and investing goals are top priorities in 2025
They findings also reveal 59% of respondents want to make choices that will maintain or improve their current financial stability next year, including exploring investment options, setting both short- and long-term goals for their money, and paying off debt:
- 44% want to invest more for long-term growth (ex. retirement, education)
- 38% want to save more for short-term goals (ex. vacation, emergency fund)
- 37% want to pay off debt (ex. credit cards, loans)
- 14% want to buy a home or make a major purchase
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Canadians are cutting back to cope with rising cost of living
Inflation has spiked in Canada since 2021, as pandemic-era supply chain challenges and returning consumer demand rapidly drove prices higher once lockdowns were lifted. While much progress has been made this year to reign price growth in, Canadians’ purchasing power has decreased overall. As a result, consumers are taking the following approaches, to stretch their loonies further:
- 69% have sought out discounts or cheaper alternatives
- 55% have cut back on non-essential spending
- 19% haven’t changed their spending habits
- 9% have taken on more debt to cover rising costs
- 7% have taken on another job/additional source of income to manage rising costs
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Canadians are shopping around for the best rates
When selecting a new finance product – whether a mortgage, credit card, bank account or insurance policy – respondents indicated they do their research and compare their options before making their pick. According to the survey, most respondents research and compare options for financial products:
- 30% get 3-4 quotes and visit 3-4 websites for comparison
- 28% get 1-2 quotes and visit 1-2 websites before deciding
- 22% research extensively, but the number of quotes or websites varies
- 12% don’t compare options, they usually stick with their current provider
- 4% get 5 or more quotes and visit 5 or more websites for thorough research
The bottom line
As the cost of living remains elevated in Canada, it’s clear consumers are taking measures to adapt to these rising costs, manage their debt, and secure their financial futures. A strong emphasis on savings is evident, along with responsible credit card usage, and proactive debt management. Overall, making informed choices on financial products can help consumers best manage their finances, and achieve their top money goals in 2025.
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Penelope Graham, Head of Content
Penelope has over a decade of experience covering real estate, mortgage, and personal finance topics and her commentary on the housing market is featured on both national and local media outlets.