(Toronto) The number of Canadians having difficulty making their monthly mortgage payments is on the rise, as are fears of facing higher payments when renewing a mortgage, results show a new survey.
Data released by the Angus Reid Institute on Monday shows 15% of mortgage holders say they find the financial aspect of their mortgage “very difficult”, up from 8% in March and 11% in June.
Although most observers expect the Bank of Canada to keep its key interest rate at 5% when it announces its next decision on Wednesday, its current level has 79% of respondents saying they are worried or very worried about having to make higher payments when it comes time to renew their mortgage.
Those with an adjustable-rate mortgage were less likely than respondents with a fixed-rate mortgage to find their monthly payments manageable at the moment, but those with an adjustable-rate mortgage were also less likely to be ” very worried” about their next mortgage or what their renewal might bring, compared to fixed-rate mortgage holders.
Canada’s central bank kept its key interest rate unchanged last month, but left the door open to further rate hikes, citing concerns about continued underlying price pressures.
September’s Consumer Price Index report helped ease some concerns about inflation, which has slowed to 3.8% on an annual basis.
