A third of Canadians struggling with mortgage payments: poll
Almost a third of Canadians are having a tough time paying their mortgage, and those on a variable rate are suffering the most.
According to an Angus Reid Institute poll 30% of Canadians are having a tough or difficult time with their mortgage, with that number rising to 51 per cent for those who have a variable rate.
The biggest fear comes when it's time to renew, with 77 per cent saying they are worried about the additional cost that will likely bring regardless of whether they have a fixed or variable mortgage.
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The Bank of Canada has put the target interest rate up eight times since the beginning of 2022.
Recent homeowners worry the most with 91% of people who have 25 years left on their mortgages worried about the future. But even 44% of those with less than five years left are still concerned.
The poll found that almost 18% would lose money if they were forced to sell their home. This number jumps to 24% for those with 25 or more years yet to pay.
While 7% of Canadians are finding it "very difficult" to pay their mortgage, 15% of tenants are finding it "very difficult" to pay their rent.
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The Angus Reid poll found that between 40 and 50% of Canadians had drawn money from savings accounts they tried not to touch.
Those with variable-rate mortgages were the most likely to have done this with 50% saying they took money from savings accounts.45% of those with a fixed rate had done this, as had 41 per cent of renters.
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According to the poll, economists estimate that two-thirds of variable-rate mortgage holders have reached their trigger rate, meaning a larger proportion of the monthly payment goes towards interest rather than paying down the loan.
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