VANCOUVER – Data from the non-profit Angus Reid Institute finds the number of mortgage holders struggling with their monthly payment growing in recent months. One-in-six (15%) in this group say they find the financial aspect of their mortgage “very difficult,” a figure that doubled from data seen in March.
The Bank of Canada has hiked rates several times this year and many are still feeling the shock of the cost of borrowing jumping significantly since the beginning of 2022, when the BoC’s policy rate was 0.25 per cent. Since then, it has risen to five per cent.
With rates as they are, four-in-five homeowners with a mortgage say they are either worried (40%) or very worried (39%) they will face higher payments when it comes time to renew with their bank.
Those facing renewal in the next 12 months are spooked more than others, with a majority “very worried” (57%) their monthly payments will rise significantly.
Overall, Canadians are more down than usual on their financial situation and prospects. Half (49%) say they are in a worse financial position than they were last year, while 35 per cent expect to be in a worse position a year from now. Both figures tie records seen in more than 13 years of tracking data from the Angus Reid Institute.
Housing affordability and climate change were neck and neck as top issues in September last year (28% chose climate change as top issue; 27% chose housing affordability), but the two issues are now separated by 11 points (32% housing affordability, 23% climate change). This despite the record summer of wildfires drawing renewed attention to the climate crisis.
More than half (54%) say it is difficult to feed their household given the cost of food currently.
Those on fixed rate mortgages are more likely (57%) to find their monthly payments easy to handle.
