Nearly 1 in 4 Canadians feel they may need to sell their homes: new survey
A new survey reveals that if mortgage interest rates continue to rise, one in four homeowners would be forced to sell their home.
Manulife Bank’s most recent debt survey asked 2,001 Canadians in all provinces between the ages of 20 and 69 with household income of more than $40k.
The results of that survey show that one in five Canadians expect rising interest rates to have a significant negative impact on their overall mortgage, debt, and financial situation.
As many as 18 percent of homeowners believe they can no longer afford the house they own, and indebted Canadians are more likely to report that debt is causing them stress, with close to half saying it’s negatively impacting their mental health.
Earlier this month, Susan Dodds listed for sale the home she and her husband have lived in for 30 years and has had plenty of interest. “We’ve even had people that have been video touring for people from British Columbia,” she said. “But as far as offers go, I don’t think we’ve had any of those.”
“Since January, [interest] rates have increased 75 basis points, so that adds another $250 to your monthly payment,” said Lysa Fitzgerald, the vice president of sales for Manulife Bank. “If rates increase again, and let’s speculate another fifty basis points, that can add another $150 to that.”
“One of two percentage points, it certainly has an effect,” said Warren Neufeld, president of the Brandon and Area Realtors. “Maybe not to the same tune as if your mortgage is in the million plus range, those effects ripple maybe a bit more quickly.”
More statistics from the survey show that nearly two thirds of those surveyed do not view home ownership as being affordable in their local community, and nearly half said they would struggle to handle unexpected expenses or are reconsidering summer vacation plans due to affordability concerns.
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