Rising Interest Rates Could Lead To 1 In 4 Canadian Homeowners Selling Their Property
A study also found that 18% of Canadians can't afford their current home.
The squeeze of the economy is apparently being felt by Canadians, especially when it comes to housing.
According to Manulife's Bank Debt Survey, which looks at Canadians aged 20 to 69 who make over $40,000 a year, many are worried about their ability to buy or keep their home.
Per the research, one in four Canadian homeowners feel that if interest rates continue to rise, they will be forced to sell their homes.
And, the future of Canada's interest rate isn't the only thing vexing Canuck homeowners.
Currently, around 18% say they can no longer afford the house they own, with one in five seeing rising interest rates as something that will negatively impact their financial situation, especially their mortgage.
It's hard for those that don't have a home just yet too. According to the study, two-thirds of wannabe buyers see the housing market in their local community as completely unaffordable.
Along with that, 71% of Canadians who don't own a home yet say they worry about their ability to save up to buy their first domicile.
These survey results come after a recent upping of the prime interest rate by the Bank Of Canada.
Part of this adjustment is a desire to curb the rising rate of inflation in Canada, which has been going up over the last few months.
Along with this hike in interest rates, the Bank of Canada has also speculated that, if things go unchanged, monthly mortgage payments could rise by 45% in the years 2025/26 for some people who got a mortgage in 2020/21.
Perhaps worse still, even more interest rate hikes are suspected to happen in 2022.
This article's cover image was used for illustrative purposes only.
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