Survey Shows More Than 50 per cent of Canadians At Risk Of Missing Mortgage Payment Within 3 Months
A new survey has found 51 per cent of Canadians would miss their mortgage payment within three months if they lost their primary source of income, while 16 per cent of mortgage holders would fall behind on their payments within 30 days.
The survey, which was commissioned by online mortgage marketplace ratefilter.ca, also found that Canadians spend an average of 37 per cent of their pre-tax income on housing, with 62 per cent exceeding the Canadian Mortgage and Housing Corporation’s (CMHC) recommended guideline of spending no more than 30 per cent of pre-tax income on housing.
The results offer new insight into the financial health of Canadians ahead of the Bank of Canada’s next interest rate decision on Oct. 25.
“These statistics corroborate what we’ve been hearing anecdotally from Canadians who are struggling to make ends meet due to higher interest rates. Many Canadians feel like they’re at a breaking point due to higher interest rates. Even if the Bank of Canada pauses its rate hike, these borrowers will still be dealing with rates at a 20-year high,” said Andy Hill, co-founder of ratefilter.ca
As the Bank of Canada prepares for its next interest rate decision on Oct. 25, these figures underscore the urgency for both policymakers and individuals to address the rising costs of housing in Canada. While the statistics offer a broad view, the individual stories highlight an unsettling financial instability lurking beneath the surface.
The online survey was conducted by Leger on behalf of ratefilter.ca and is based on results from a representative sample of 1,548 adult Canadians (including 1,028 homeowners and 650 mortgage holders) from Oct. 13-16, 2023. To see the survey’s results click here.