Half of variable rate mortgage holders having a tough time financially; one-in-three with fixed rate
May 2, 2023 – The Bank of Canada held its key rate firm in April, but five more dates are set aside for possible rate changes in 2023. While Canadians – particularly in urban centres – have been voicing concern about housing affordability for years, the Bank’s decision to raise its target overnight rate eight times since the beginning of 2022, and the subsequent rise in mortgage lending rates, has many of those already in the housing market now adding their voices to the affordability crisis.
A new study from the non-profit Angus Reid Institute finds three-in-ten (30%) having a tough or difficult time with their mortgage, rising to half (51%) among those who have a variable rate.
This adds further anxiety to a fiscal environment where mortgage defaults and foreclosures have already begun to rise.