Since March, the Bank of Canada has raised interest rates twice, and the number of homeowners struggling to afford their monthly mortgage payments has doubled.Since March, the Bank of Canada has raised interest rates twice, and the number of homeowners struggling to afford their monthly mortgage payments has doubled., 15% of Canadian mortgage holders find the financial aspect of their living situation "very difficult," compared to just 8% in March.
Between 2018 and 2020, the policy rate hovered between 1% and 2%. Following the onset of the pandemic, the BoC slashed rates to 0.25% and promised to keep them "With the most common mortgage term in Canada being five years, homeowners who locked in at low rates are now staring down the barrel of renewal.
Of those with one to two years left on their mortgage term, 48% are very worried at the prospect of renewal, and 46% find it tough or very difficult to make their payments every month.Between impending renewals, high interest rates, and the ever-increasing cost of living, household debt is a significant source of anxiety for mortgage holders.