Number of mortgage holders voicing difficulty with housing costs up 11 points compared to last June
June 5, 2023 – Inflation has proven a difficult foe for the Bank of Canada to defeat. After the central bank paused for two rate cycles, economists are speculating that a rate hike may be forthcoming as soon as this week after higher-than-expected inflation numbers in May and economic growth in the first quarter of 2023.
This would spell more trouble for the more than half (54%) of renters and approaching half (45%) of mortgage-holders who say they are already finding their monthly payment for housing tough or very difficult to manage, according to new data from the non-profit Angus Reid Institute.
Interest rates have risen significantly since the beginning of 2022 as the Bank of Canada has tried to cool rising inflation. This has affected both homeowners with mortgages as the cost of borrowing has gone up and renters, many of whose landlords are affected by the interest rate increases. Indeed, since June 2022, both renters and owners are more likely to report difficulties paying their rent or mortgage, respectively. One year ago, one-in-five (19%) renters reported it was very difficult, now one-quarter (24%) say the same. The proportion of owners who find their mortgage difficult to manage has risen from one-third (34%) to 45 per cent.