A new survey by Manulife Bank of Canada has found that one in four Canadian homeowners
(25%) will have to sell their home if interest rates continue to rise this year as expected.
The poll, conducted April 14 to 20, also found that 18% of Canadian homeowners are already
struggling to afford their homes.
Additionally, close to half of Canadians surveyed said that debt is impacting their mental health,
and nearly 50% of Canadians say they struggle to handle unexpected expenses that crop up.
The survey results come as the Bank of Canada continues to lift interest rates to dampen
inflation that is running at a 30-year high of 6.8%. Earlier this month, Canada’s central bank
raised its benchmark interest rate by 50 basis points to 1.5%.
In the Manulife survey, about 20% of Canadians said that rising interest rates will have a
“significant negative impact” on their mortgage, debt, and overall financial situation. The survey
also found that 67% of Canadians do not view home ownership as affordable.
