If interest rates rise further, one in four homeowners will need to sell their home: Survey

Nearly one in four homeowners have to sell their homes if interest rates rise further, according to a new debt survey by the Manulife Bank of Canada.

A survey conducted between April 14th and April 20th also found that 18% of homeowners surveyed were already at a stage where they couldn’t afford a home.

According to a survey, more than one in five Canadians expect rising interest rates to have a “significant negative impact” on mortgages, debt and overall financial conditions.

Banks of Canada are on the road to raising rates as they try to curb inflation. Inflation is currently at 6.8%, the highest in 31 years. On June 1, the central bank raised its major interest rate by 0.5 percentage points to 1.5 percent.

A Manulife survey also found that two-thirds of Canadians do not consider home ownership affordable in the local community.

In addition, nearly half of the Canadians who are indebted say that debt affects their mental health, and nearly 50% of Canadians say they have a hard time dealing with surprising costs. ..

follow