New poll reveals depth of Canadian homeowners' current worries
A significant share of Canadian homeowners said that they won’t be able to “ride out” the latest Bank of Canada hike which pushed its prime lending rate up to 4.5%, according to a new poll by Yahoo Canada and Maru Group.
The survey found that more than one-third (35%) of homeowners who are still paying for their residences believe that they don’t have the financial capability to weather the hike for more than 9.7 months, “before they are forced to sell or vacate their home for another arrangement.”
While a bit more muted, the impact on those with variable/adjustable mortgages (8.3 months) or lines of credit (8.3 months) is no less troubling.
The findings also reveal that escalating interest rates have had an impact on the vast majority of Canadians (71%), especially among homeowners with financial encumbrances attached to their residences,” the report said. “Even half (52%) of those homeowners without a loan/mortgage admit to being affected by rising rates.”
The majority (57%) of Canadians who said that they own their homes currently have some form of financial arrangement tied to their ownership.
“It’s fair to note that escalating interest rates [have] had an impact on those without a loan on their house because of other forms of credit (such as credit cards) or personal/co-signed loans they have made to others (for a home or another debt) they may have,” the report said.
