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The majority of Canadians who feel pressured on mortgages and rent payments: polls

And this was before the Bank of Canada raised its benchmark interest rate to 0.5% last week.

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According to a new report from the Angus Reed Institute, the majority of Canadians already feel pressured by the cost of maintaining an overhead roof. This was before interest rates began to rise.

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The Bank of Canada raised its benchmark interest rate to 0.5% last Wednesday for the first time since 2018 to curb inflation and the real estate market.

Also, as interest rates are expected to rise in the coming months, most Canadians may be walking a tightrope to overcome mortgage payments, rising rents and rising food costs. , And a report released on Monday suggests.

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According to a voluntary survey by the Angus Reed Institute, 58% of homeowners who own a mortgage need to monitor their earnings to pay their mortgage. 11 percent said payments would tighten things and limit their lifestyle. And 1 percent of those who say they’re having a hard time earning money because they pay a lot of mortgages.

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British Columbia people are in a pinch. Twenty-three percent say that mortgage payments mean that lifestyles need to be curtailed almost twice the national average.

Nationally, 42% say they can easily manage their mortgage payments and make all the other money. In contrast, BC homeowners in Quebec, Atlantic Canada, and Ontario pay their mortgages on their budget.

The report also delves into the budget constraints faced by lessees. It turns out that lessors are having a harder time paying for their homes than those who own a home with the help of a mortgage. Throughout Canada, more than one in ten renters, or 12%, say they are having a hard time earning income.

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Renters are also less likely to have room to wiggle due to unexpected billing or energy than homeowners who have a mortgage. Approximately 23% said they couldn’t manage their unexpected spending, compared to 12% of mortgage holders who were hit hard by the unexpected spending.

British Columbia lessors are most likely to worry about the impact of rent on their budget. Only 17% said they could easily manage their rent payments, but 26% nationwide, the lowest level in the country.

The majority of those who said mortgages and rent payments were running out of budget said they had changed their behavior to deal with rising food prices.

Most people reduce food costs by reducing eating out, switching to cheaper, lower quality brands, reducing meat, reducing alcohol, and reducing fresh fruits and vegetables. 4% say they went to a food bank for groceries.

To reduce overall spending, 41% said they postponed large purchases, 31% said they reduced their driving, and 29% said they canceled or reduced their trips.

The online survey was conducted on February 11-13, 2022, with a representative randomized sample of 1,622 Canadian adults who are members of the Angus Lead Forum. For comparison purposes only, a probability sample of this size has a margin of error of +/- 2.5 percentage points, 19 out of 20.

The majority of Canadians who feel pressured on mortgages and rent payments: polls

Source link The majority of Canadians who feel pressured on mortgages and rent payments: polls

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