A new survey suggests 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 lender.
Around 15 per cent of borrowers say they find the financial aspect of their mortgage SA国际影视传媒渧ery difficult,SA国际影视传媒� up from 11 per cent in June and eight per cent in March, according to data released on Monday by the Angus Reid Institute.
Despite expectations the Bank of Canada will hold its key interest rate steady at five per cent when it announces its next decision Wednesday, 79 per cent of survey respondents are 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 with 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 SA国际影视传媒渧ery worriedSA国际影视传媒� about what their next mortgage renewal might bring compared to those with fixed-rate mortgages.
The pessimism comes as no surprise, said James Laird, co-CEO of Ratehub.ca and president of CanWise Financial.
But whether or not the Bank of Canada holds steady this week, it likely wonSA国际影视传媒檛 ease the concerns of most borrowers yet, he said.
SA国际影视传媒淚f it went up an extra 25 basis points, or letSA国际影视传媒檚 say, that happens in the next six months, itSA国际影视传媒檚 not that big of a change,SA国际影视传媒� said Laird.
SA国际影视传媒淲hat is probably more interesting is going to be the commentary, as opposed to the actual rate decision. The bank will sometimes give us a good peek into what theySA国际影视传媒檙e thinking and what theySA国际影视传媒檙e planning in different scenarios in the months ahead.SA国际影视传媒�
The 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 worries about the annual inflation rate, which slowed to 3.8 per cent.
The Angus Reid data also shows around half of respondents feel they are in a worse financial position than they were last year, while 35 per cent expect to be in a worse position a year from now.
The online survey was conducted from Oct. 9-13 among a representative randomized sample of 1,878 Canadian adults who are members of Angus Reid Forum. The poll has a margin of error of +/- 2 percentage points, 19 times out of 20, the company said.
Laird said that while households are SA国际影视传媒渄efinitely strained,SA国际影视传媒� most Canadians are still making their mortgage payments, unless they have suffered a recent job loss. But he said that means SA国际影视传媒渙ther important parts of the financial pictureSA国际影视传媒� for household budgets, such as savings, are taking a hit.
SA国际影视传媒淚 donSA国际影视传媒檛 want to say itSA国际影视传媒檚 easy, but itSA国际影视传媒檚 possible,SA国际影视传媒� he said.
SA国际影视传媒淭he first dollar in every household budget does go to that shelter payment, whether itSA国际影视传媒檚 a rent payment or a mortgage payment. So whatSA国际影视传媒檚 happening is things are being squeezed out of the budget. The payments are being made on time still, thereSA国际影视传媒檚 just less money for other very important things like RRSPs and RESPs.SA国际影视传媒�
By Sammy Hudes, The Canadian Press
