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Saturday, August 13, 2022

Almost one-quarter of Canadians believe they may need to sell their houses

Almost one-quarter of Canadians believe they will have to sell their houses.

Key Takeaways:

  • According to a new survey, one out of every four homeowners will be compelled to sell their home if mortgage interest rates continue to rise.
  • Susan Dodds put her home, which she and her husband have resided in for 30 years, up for sale earlier this month, and it has drawn a lot of interest.

According to a new survey, if mortgage interest rates continue to rise, one in every four homeowners will be compelled to sell their home.

Manulife Bank’s most recent debt survey polled 2,001 Canadians aged 20 to 69 from all provinces with a family income of more than $40,000.

According to the findings of that survey, one in every five Canadians believes that rising interest rates will have a substantial negative impact on their total mortgage, debt, and financial status.

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As many as 18% of homeowners fear they can no longer afford their property. Indebted Canadians are more likely to indicate that debt is causing them worry, with nearly half reporting that it badly hurts their mental health.

Susan Dodds put the home she as well as her husband have lived in for 30 years for sale earlier this month and has received a lot of attention. “We’ve even had folks video tour for individuals from British Columbia,” she says. “However, I don’t believe we’ve received any proposals.”

“Interest rates have climbed 75 basis points since January, so that adds another $250 to your monthly bill,” said Lysa Fitzgerald, vice president of sales at Manulife Bank. “If rates rise again, say another 50 basis points, which can add another $150 to that.”

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Almost one-quarter of Canadians believe they will have to sell their houses. Image from Radio-Canada.ca

“Even if it’s one or two percentage points,” said Warren Neufeld, president of the Brandon and Area Realtors. “Perhaps not to the same extent as if your mortgage is in the million-dollar region, but those impacts spread quickly.”

According to the survey, over two-thirds of those polled do not believe home ownership is reasonable in their neighborhood. Nearly half said they would struggle to handle unforeseen expenses or are reconsidering summer vacation plans owing to cost worries.

Source: Global News

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