However, less than two out of five Canadians take mortgages into account when developing budgets
Amid rising residential asset prices, mortgage payments continue to be among the largest monthly expenses for 35% of Canadians – but only 39% take their mortgages into account when drafting their budgets, according to a new survey by IG Wealth Management.
The poll also found that fully 56% of Canadian mortgage holders fear for their ability to make regular mortgage payments should rate hikes continue.
“The combination of rising interest rates and inflation is causing stress for many Canadians, and in some cases tense dinner table conversations across the country,” said Alana Riley, head of mortgage, insurance, and banking at IG Wealth Management.
Read more: Mortgage lenders’ results show concern in Canada
“Canadian families are wrestling with questions such as should they go with a fixed or variable rate mortgage, how can they more effectively manage their money and what can they do to set themselves up for the future, whether it be their retirement, the purchase of a home or paying for their children’s education,” Riley added.
Only 45% of respondents said that they will be mortgage-free by the time they retire, while as many as 60% of Canadians admitted to being worried about slashing their spending amid rising rates and costs. An alarming 43% said that they are unsure if they’ll be able to cover all of their monthly bills should current trends continue.
