Mortgage regret: Survey shows Canadians are stressed about their current mortgage
According to a new survey, a third of Canadian homeowners polled said they regret their current mortgage situation.
That's according to a survey taken by the Real Estate and Mortgage Institute of Canada (REMIC) which completed an online survey of 1,000 random Canadian homeowners.
Some of its key findings show many homeowners are experiencing a form of "mortgage malaise" said REMIC CEO and president Joe White.
‘Mortgage malaise’
- 34.1% of Canadians say ‘they regret the mortgage that they are currently in.’
- 21.80% say ‘interest rate hikes have made it unaffordable.’
- 12.30% regret being locked in at a 'bad rate.’
Yet only 30.21% of Canadians say they would have purchased a less expensive property if they knew mortgage rates would go up.
"It's one thing to look at payments that are increasing by X percent, and it's another thing to look at individuals who are stressed out about this and we're seeing cracks in the family unit because of these financial stressors," said White.
This is a stressful time for homeowners like Maggie White, a new homeowner who despite working a full-time job in the aerospace sector, has had to take on a second job as a cashier to afford her mortgage payments.
"It just started increasing and increasing and by the time June came around of this year our payments were more so 2,300 a month," said Maggie.
With financial reports showing inflation rising still, some speculate that interest rates could climb again, putting even more financial pressure on families which is leading to some tough decisions.
"I think people are stressed," said Clinton Wilkins, a mortgage broker in Halifax. "Clients are assessing whether they can stay in their home or does it financially make sense to list their home?"
The Bank of Canada hasn't signalled whether it will raise its key interest rate beyond the current five per cent figure, either way for Homeowners like Maggie and her husband, are already feeling the financial pressure and having to make some tough decisions.
"It's been very stressful, financially," said Maggie. The 25-year-old first-time homebuyer and her husband couldn't handle the constant increases to their variable rate and eventually locked into a long-term fixed rate this summer.
But at this rate, their mortgage payments are still overwhelming.
"I'm hoping I won't have to continue doing two jobs but our mortgage rate is still high as opposed to what it was last year," she said. "So I may have to continue this into the new year."
According to the survey, nearly 60 per cent of homeowners polled said they didn't know their exact monthly mortgage payments ‘without looking them up.’
While more than half of Canadians couldn't say what the current key interest rate was in Canada, which speaks to a need for more education around home ownership says White.
“Our survey is clearly showing that Canadian homebuyers need to educate themselves more on the basics of taking on a mortgage and its lasting financial impact," said White. "This is exactly the kind of information that they would be getting from a licensed mortgage broker and a big part of the advantage of using a broker to secure a mortgage."
In Halifax there's such a housing shortage that if homeowners wanted to downsize their home, to find something more affordable, there are not a lot of options on the market, said Wilkins.
"I think it's still very hot," said Wilkins, referring to the housing market. "We're still in a seller's market here in Halifax and that is certainly not the case across the country.
I can tell you that there are reports out of Ontario in Alberta and B.C. that their housing markets are down 30 to 50 percent in terms of activity."
CTVNews.ca Top Stories
PWHL Minnesota defeats Boston to win inaugural Walter Cup
Minnesota won the inaugural championship of the Professional Women’s Hockey League on Wednesday night, getting 17 saves from Nicole Hensley to beat Boston 3-0 in a winner-take-all Game 5 and claim the Walter Cup.
Canadians are eyeing moves to these cities for more affordable housing
Faced with elevated housing prices, half of Canadians in the country's largest cities are considering moving to places with more affordable housing.
B.C. mortgage broker ran $270-million Ponzi scheme, then fled Canada, bankruptcy trustee says
The trustee appointed to manage the bankruptcies of a Victoria mortgage company and its owner has concluded that they committed "numerous offences" and operated as a "massive Ponzi scheme."
Oilers rally to beat Stars, tie Western Conference Final
With the Edmonton Oilers down two goals late in the first period of Game 4, Rogers Place was quiet, fans seemingly bewildered at the early, quick scoring of the Dallas Stars and the slow start by the home team. Ryan McLeod's marker with six-and-a-half minutes in the opening frame left changed all that.
McDonald's says $18 Big Mac meal was an 'exception' and their prices haven't risen that much
McDonald’s is fighting back against viral tweets and media reports that it says have exaggerated its price increases.
'Targeted again': Montreal police investigate after gunshot fired at Jewish school
Police are investigating another building in Montreal's community was struck by gunfire.
Tessa Virtue reveals she's expecting her first child. Here's what Canadians had to say
Canadian figure-skating icon Tessa Virtue is expecting her first child, she revealed via social media Tuesday.
Poilievre says Canadians 'fleeing' to Nicaragua, Liberals say it shows he 'doesn't have a clue'
Liberal parliamentarians are criticizing Conservative Leader Pierre Poilievre over a new video in which he promotes the idea that some Canadians are 'fleeing' Canada to live in Nicaragua because they can't afford a house in this country.
'Do not drive': Nissan warns Canadian drivers of explosion risk impacting 48,000 vehicles
Car manufacturer Nissan has issued a do-not-drive warning for some older vehicles equipped with Takata airbag inflators, due to the risk of explosion during a crash.