CANADA
Younger homeowners more likely to be financially stressed: survey
The Canadian Press
Roughly six in 10 Canadians with a mortgage are financially stressed, with younger homeowners more likely to be under pressure.
In a new Leger survey, 68 per cent of respondents between 18 and 34 years of age with a mortgage say they are very or somewhat financially stressed about their mortgages, compared with 62 per cent across all homeowners.
Last week, the Bank of Canada cut its key interest rate, offering some relief to borrowers after the central bank's fight against inflation saw its key lending rate rise to a peak of five per cent.
Four out of 10 Canadians surveyed by Leger said they think the Bank of Canada should be cautious as it lowers interest rates, but another third think it’s not going fast enough.
Respondents in households making more than $100,000 a year were more likely to say they support the central bank’s caution.
Though the steep rise in interest rates has brought inflation within reach of the Bank of Canada’s two per cent target, it has put pressure on Canadian households and weighed on the economy.
Among the survey respondents with mortgages, 77 per cent have a fixed rate.
Of those with fixed-rate mortgages, 43 per cent say their mortgage is up for renewal this year or next year.
Two thirds of respondents whose mortgages are up for renewal in the next two years say they plan to go for a fixed-rate mortgage. Younger respondents were more likely to say they will opt for a variable rate.
Leger surveyed 1,528 Canadians between June 7 and June 9. Online surveys cannot be assigned a margin of error because they do not randomly sample the population.
This report by The Canadian Press was first published June 11, 2024.
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