Almost one quarter (24 per cent) of homeowners in Canada say they've come up short paying their bills in the last year, according to a new survey released by Manulife Bank of Canada, in the latest sign that over-indebted Canadians are being stretched beyond their means.

The survey also shows 70 per cent of Canadians with mortgages would not be able to make their payments if they rose 10 per cent. More than half (51 per cent) only have $5,000 or less in a rainy day fund -- and one fifth don't have anything set aside for financial emergencies.

“The truth about debt in Canada is that many homeowners are not prepared to adjust to rising interest rates, unforeseen expenses or interruption in their income,” said Manulife Bank of Canada Chief Executive Officer Rick Lunny in a statement released Tuesday. 

The survey also underscores the extent to which ‘the bank of mom and dad’ is supporting Canadian millennials in their dream of cracking the housing market. Forty-five per cent of millennial homeowners surveyed say they either received cash or a loan from their family when they purchased their first home. 

Meanwhile, four out of every 10 (41 per cent) Canadian baby boomers say more than 60 per cent of their household wealth is tied up in their home.

“Many boomers approaching retirement share the same lack of financial flexibility as millennials," added Lunny. "They want to remain in their current homes, but their home makes up a big part of their net worth."