Six in ten Canadians who have a mortgage experience financial stress, and younger home owners are more susceptible to this.
According to a recent Leger study, 68% respondents aged 18-34 with mortgages are either very stressed or slightly worried about the financial burden of their mortgages. This compares with only 62% of all homeowners.
The Bank of Canada reduced its main interest rate last week. This is a relief for borrowers, after its fight against inflation caused its rate to reach 5%.
Leger surveyed Canadians and found that four out of ten said the Bank of Canada needs to be careful when it comes to lowering interest rates. Another third thought it was not moving fast enough.
The respondents in households earning more than $100,000 per year are more likely to support the caution of the central bank.
The Bank of Canada has set a target of two percent for inflation. However, the sharp rise in rates put Canadians under pressure and the economy was impacted.
Seventy-seven percent of survey respondents who have mortgages use a rate that is fixed.
For those who have fixed rate mortgages, 43 percent say that their loan is due for renewal in this or the next year.
In the coming two years, about two thirds of those whose mortgages will be renewed plan on choosing a mortgage with a fixed rate. The younger respondents are more likely to choose a variable-rate mortgage.
Leger conducted a survey of 1,528 Canadians from June 7 to June 9. Because online surveys do not sample randomly, it is impossible to assign a margin for error.
The Canadian Press published this report on June 11, 2024.