Almost quarter of Canadian homeowners would have to sell their property if rates keep growing

The latest poll by Manulife Bank of Canada shows that almost one in four homeowners will be forced to sell their home in case interest rates continue to rise.

The survey was conducted during the period from April 14 and April 20. It says 18% of respondents already can not afford their homes.

More than one in five Canadians believe growing interest rates will have a “significant negative influence” on their mortgage, debt and financial situation.

The Bank of Canada still follows its rate-increase cycle in attempt to restrain inflation, which has reached the highest level in 31 years (6.8%). As you know, on June 1, the BoC raised its key lending rate by 0.50% to 1.5%.

According to the Manulife poll, two-thirds of Canadians don’t consider home ownership in their neighborhood affordable.

Moreover, nearly half of indebted Canadians say debt is affecting their mental health, and almost 50% of respondents believe they would face significant problems in case of unexpected expenses.