Younger Homeowners More Likely to Be Financially Stressed: Survey

Younger Homeowners More Likely to Be Financially Stressed: Survey
A real estate sign is displayed in front of a house in the Riverdale area of Toronto on Sept. 29, 2021. (The Canadian Press/Evan Buhler)
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 percent 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 percent 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 percent.

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 percent target, it has put pressure on Canadian households and weighed on the economy.

Among the survey respondents with mortgages, 77 percent have a fixed rate.

Of those with fixed-rate mortgages, 43 percent 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.