Nearly 1 in 4 homeowners would have to sell if interest rates rise more

Nearly one in four homeowners say they will have to sell their home if interest rates go up further, according to a new debt survey from Manulife Bank of Canada.

The survey, conducted between April 14 and April 20, also found that 18% of homeowners polled are already at a stage where they can’t afford their homes.

Over one in five Canadians expect rising interest rates to have a “significant negative impact” on their overall mortgage, debt and financial situation, the survey found.

The Bank of Canada remains on a rate-hike path as it tries to tame inflation, which is now at a 31-year high at 6.8%. On June 1, the central bank increased its key interest rate by half a percentage point to 1.5%.

The Manulife survey also found that two-thirds of Canadians do not view homeownership as affordable in their local community.

Additionally, close to half of indebted Canadians say debt is impacting their mental health, and almost 50% of Canadians say they would struggle to handle surprise expenses.

The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.