Canadian homeowners are pessimistic over the prospect of maintaining their mortgage payments in the wake of rising rates.
According to a new study from the nonprofit Angus Reid Institute that polled 1,600 Canadian adults, nearly one-third (30%) of respondents said they were having a tough or difficult time with their mortgage, and that share rose to 51% for those carrying a variable rate mortgage.
Canadian homeowners were also concerned over the impact of interest rate for their next renewal – 77% said they were worried about the additional cost future renegotiations could bring. And the agitation was even greater (91%) among those with 25 or more years left in their amortization schedule; there was less concern (44%) among those who have five or fewer years to go (44%).
Half of the respondents with a variable rate mortgage said they recently took money out from a savings account they tried not to touch in order to keep up with expenses – renters were less likely to have done that (41%), although they were also more likely to have borrowed from friends or family (21%) than owners (9%) to make ends meet.
And nearly one-in-five homeowners (18%) feared they would lose money if they were forced to sell their home – the percentage rises to 24% among those whose mortgage term exceeds 25 years.
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