A significant share of Canadians are bracing for the negative impacts of rising interest rates
Nearly one in four Canadian homeowners said that they will have to sell their home if interest hikes continue pushing prices up, according to a new survey by Manulife Bank.
“The survey revealed nearly one third of Canadians admit they don’t understand how inflation or interest rates work, close to three in four do not have a written financial plan, and almost half do not have a household budget,” said Lysa Fitzgerald, vice president of sales at Manulife Bank.
The poll also found that more than one in five Canadians are bracing for the significant negative impacts of rising interest rates on their overall mortgage, debt, and financial situation. Nearly half said that debt has a considerable negative effect on their mental health.
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Another 18% of homeowners believe that they can no longer afford the house they own, while nearly two-thirds of Canadians said that they find entering homeownership an unaffordable venture. As many as 71% who currently do not own homes expressed worries about saving up for a purchase.
Four in five Canadians believe that a housing affordability crisis is currently endemic in Canada.
“In the past few years, we’ve seen a huge shift in the housing market, and in parallel we’re witnessing interest rates and inflation rising – all contributing to concerns around Canadian homeownership, affordability and Canadians’ mental health,” Fitzgerald said.
