In these trying times, are you struggling financially or just going with the flow? How does your experience compare to others? Take On The Bay’s Financial Survey to find out.
By Trent Gow //
Our current financial storm
No matter how you look at it, the Southern Georgian Bay region is a very special place. From the world’s longest freshwater beach to the highest point of the Niagara Escarpment, the geography is spectacular. And the allure is much more than the aesthetic. People who live or visit here have access to a wide variety of outdoor activities, fine dining, performing arts and lifelong learning. Does it get any better? It’s no wonder that Southern Georgian Bay is now one of Canada’s fastest-growing regions.
The 2021 census revealed that the population grew by 34 percent over five years in the Town of The Blue Mountains and 20 percent in Wasaga Beach. Collingwood was not far behind at 14 percent. This compares to the provincial average of just under six percent.
We’re not a well-kept secret anymore. Newcomers are joining us in droves.
But has our silver lining developed an ominous cloud? Do challenging post-pandemic financial realities mean that increasingly South Georgian Bay is only a utopia if you are wealthy? Does this resonate?
Current local data is sorely lacking. We’ve created an online financial survey geared to your age, stage and circumstances to fill the gap. With your online contribution we will better understand the impacts of financial turbulence in our region. How many of us are feeling the pinch, going with the flow or still thriving? But first, for more information about how we got into this money mess, and what it means, read on.
Since March 2022, the Bank of Canada’s benchmark interest rate has risen ten times by a cumulative 1,900 percent (from 0.25 to 5.00) with dramatic impacts on the cost of mortgages and all other borrowing.
CTV recently highlighted that a Springwater family must sell their home after their monthly mortgage payment ballooned from $2,850 to $6,200 in 18 months. How much has yours gone up? Is it still manageable?
And then there’s the surging cost of groceries. Food prices in Canada rose almost 10 percent in 2022 and are expected to increase by another five to seven percent this year. How do these financial blows affect you? Are you struggling to feed your family? Do you have to trade-off covering one essential expense against another?
According to Second Harvest, non-profit programs like food banks will assist 60 percent more vulnerable Canadians in 2023, on top of 134 percent growth in 2022. Food Banks Canada says that these punishing factors are driving people who were already living precariously close to the edge, off that edge. Are you among them? Or are you contributing more to local food programs to help others make ends meet?
Are you relying more on credit cards to stem the financial tide? If so, you’re not alone. Equifax Canada reports that on average Canadian consumers are spending 21.5 percent more each month on their credit cards in 2023 compared to their pre-pandemic behaviour. But how long can that help? Insolvencies in the first quarter of 2023 were higher by 28.5 percent and delinquency rates of 90-plus days on non-mortgage balances were up 18.8 percent compared to the same period last year. Are you worried that bankruptcy is looming?
And who is most affected? The credit agency says that at the end of 2022, younger and lower-income individuals were showing the most difficulty in making payments. But now homeowners are struggling as well, especially following challenging mortgage renewals. Does this include you?
Is Southern Georgian Bay the eye of the hurricane?
National financial statistics tell a troubling story. Even so, in Southern Georgian Bay everything appears still to be hunky-dory. Restaurants and resorts are full, high-end entertainment events abound and life in this idyllic region goes on as usual. Have we dodged the bullet? Are we an oasis of tranquility in a financial storm or in fact is the party over for some or even many of us? Is the gap between haves and have-nots growing? What’s your experience? Statistics Canada can’t tell us the local story so we want you to.
Feeling the pinch, going with the flow, or still thriving?
Beneath the calm surface are you paddling frantically just to stay afloat? Are you worried about cash flow, how to pay your rent or feed your family? Are concerns about mortgage renewal or even bankruptcy keeping you awake at night?
Or, perhaps like Mad magazine’s iconic, insouciant Alfred E. Neuman, you’re just going with the flow? According to this rationale, life’s hard and then you die, so screw it, let’s go sailing or surfing or fishing or skiing. Whatever your pleasure, there are plenty of good things to focus on around here besides money.
Or rather than being in denial, perhaps you’re still thriving. Affluence has its privileges, after all, and as bleak as the current financial scenario may be for some in this region, perhaps it’s just water off your back? In fact, it may even represent an appealing opportunity. Financial flexibility can provide room for profitable investments in such directions as bitcoin or a surprisingly buoyant stock market. Well-heeled people actually benefit from the higher interest rate returns on their GICs and bonds. How have you benefited?
Happily, well-to-do residents of Southern Georgian Bay have a strong history of generously supporting those less fortunate. Time after time we have stepped up to fund community initiatives like Campbell House and Breaking Down Barriers, among many others. If this describes you, have you upped your ante at this turbulent time?
The On The Bay Financial Survey is now closed. Thanks to everyone that participated!
Look for the results in the upcoming Spring Issue of On The Bay.
