Half of homeowners with variable rate mortgages worried about finances: Poll

Just over half of people in the housing market who are paying variable-rate mortgages are having a tough time financially, according to the latest poll from Angus Reid Institute.

The survey found that three in 10 Canadian homeowners report difficulty paying their mortgage, rising to 51 per cent among those paying variable rates.

Though the Bank of Canada left its key rate unchanged last month, it has set aside five more dates in 2023 for possible rate changes. And it has raised its target overnight rate eight times since the start of 2022, in turn setting mortgage lending rates ticking upward.

That has put a strain on those who stretched their finances to get into the housing market in recent years, when rates were at historic lows. The rate worries add to an anxious market in which mortgage defaults and foreclosures have already started to rise.

Over three-quarters (77 per cent) of those surveyed said they’re worried about added costs the next time they have to renew their mortgage, regardless of what type they have, fixed, variable or other.