Younger homeowners more likely to be financially stressed: survey

About six in 10 Canadians who have a mortgage are financially stressed, and younger homeowners are more likely to be under pressure.

In a new Leger poll, 68 percent of respondents aged 18 to 34 with a mortgage say that are very or somewhat financially stressed about their mortgages, compared to 62% of all homeowners.

Last week, the Bank of Canada cut its key interest rate, providing some relief to borrowers after the central bank’s fight against inflation saw the key rate rise to a peak of five per cent.

Four in 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 is not moving fast enough.

Respondents from households earning more than $100,000 a year were more likely to say they supported the central bank’s prudence.

Although the sharp rise in interest rates brought inflation within reach of the Bank of Canada’s two per cent target, it put pressure on Canadian households and hurt the economy.

Of survey respondents with mortgages, 77% have a fixed rate.

Among those with fixed-rate mortgages, 43% 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 opt for a fixed-rate mortgage. Younger respondents were more likely to say they would 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 on June 11, 2024.

The Canadian Press