Canadian Homeowners Struggle with Mortgage Payments

Find out how 69% of Canadian homeowners are finding it increasingly difficult to pay their mortgages, according to a survey by Ratehub.ca. Discover the challenges they are facing as interest rates rise.

Canadian homeowners are facing increasing concerns about their mortgage payments as interest rates continue to rise, according to a recent survey conducted by Ratehub.ca. The survey revealed that a significant majority of homeowners, 67 per cent, are worried about their ability to make mortgage payments once their next renewal period arrives. Additionally, 69 per cent of respondents reported that paying their mortgage has become more challenging over the past two years.

In response to the higher interest rate environment, many homeowners have made significant financial adjustments. The survey found that 24 per cent of homeowners have considered downsizing their homes, while 29 per cent have explored the option of refinancing their mortgages. Other common strategies include tightening budgets in other areas (54 per cent) and switching to alternative lenders for financial assistance (17 per cent).

The majority of respondents, 65.1 per cent, currently have a fixed mortgage rate, while 34.9 per cent have a variable rate. Looking ahead to their next renewal, 62.6 per cent of homeowners plan to opt for a fixed rate, while 37.8 per cent are considering a variable rate.

Overall, the survey highlights the financial strain that many Canadian homeowners are experiencing due to rising interest rates. As they navigate these challenges, it is clear that homeowners are exploring various options to manage their mortgage payments and secure their financial stability.

The survey results underscore the importance of proactive financial planning and decision-making for homeowners in the current economic climate. By staying informed and considering all available options, homeowners can better position themselves to navigate the challenges of rising interest rates and ensure the long-term sustainability of their mortgage payments.