July 20th, 2024

More Canadians struggling with monthly mortgage payment: Angus Reid survey

By The Canadian Press on October 23, 2023.

A new study says the number of Canadians struggling with their monthly mortgage payment is on the rise, along with worries of potentially higher payments when it comes time to renew with their bank. A person uses an escalator in Utrecht, Netherlands, Friday, Aug. 12, 2022. THE CANADIAN PRESS/AP/Peter Dejong

TORONTO – A new study says the number of Canadians struggling with their monthly mortgage payment is on the rise, along with worries of potentially higher payments when it comes time to renew with their bank.

Data released Monday by the Angus Reid Institute shows 15 per cent of mortgage holders say they find the financial aspect of their mortgage “very difficult,” up from eight per cent in March and 11 per cent in June.

The survey says that despite expectations the Bank of Canada will hold its key interest rate steady at five per cent when it announces its next decision Wednesday, the current level has 79 per cent of respondents worried or very worried they will face higher payments when it comes time to renew their mortgage.

Those with variable-rate mortgages were less likely than respondents on fixed-rate mortgages to find their monthly payments easy to handle at the moment, but those with variable-rate loans were also less likely to be “very worried” about what their next mortgage renewal might bring compared to those on fixed-rate mortgages.

Canada’s central bank held its key interest rate steady last month but left the door open to more rate hikes, citing concerns about the persistence of underlying price pressures.

The September consumer price index report helped ease some concerns about the inflation rate, which fell back to 3.8 per cent.

This report by The Canadian Press was first published Oct. 23, 2023.

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