Nearly one in four homeowners said they would have to sell their home if interest rates rose further, according to a new debt survey from Bank of Canada Manulife.
The survey, conducted from April 14 to April 20, also found that 18% of homeowners polled were at the stage of being unable to buy their home.
According to the survey, more than one in five Canadians expect rising interest rates to have a “significant negative impact” on their mortgage, debt and overall finances.
The Bank of Canada continues to raise interest rates as it tries to rein in inflation, which is currently at a 31-year high of 6.8%. On June 1, the central bank raised its key interest rate by half a percentage point to 1.5%.
The Manulife survey also found that two-thirds of Canadians do not see home ownership as affordable in their local community.
Additionally, nearly half of indebted Canadians say debt is affecting their mental health, and nearly 50% of Canadians say they will struggle to handle unexpected expenses.
This Canadian Press report was first published on June 13, 2022.