Poll: One in Three Canadians Already Feeling the Pinches on Finances from Rising Interest Rates

According to the Financial Post's recent article, one in three Canadians say they are already feeling the effects of the increasing interest rates. 

This survey also found that four in 10 of those queried said that if interest rates go up much more they are afraid they would be in financial trouble. The survey of 2,005 adult Canadians was done online by IPSOS for MNP between September 18 and September 21. 

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Household debt has been identified as a key risk to the economy by the central bank and other experts. 

The amount Canadians owe compared with their disposable income hit a record high in the second quarter. 

Statistics Canada said household credit market debt as a proportion of household disposable income increased to 167.8 percent up from 166.6 percent in the first quarter. 

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The Bank of Canada has raised its key interest rate target twice this year, moves that have prompted the banks to raise their prime lending rates. The Bank of Canada is expected to make its next announcement this Wednesday. Economists expect no change to its overnight rate target. 

We suggest that homeowners sit down with a Licensed Mortgage Consultant to review their current mortgage and future lending needs. Call us today to book your initial meeting. 

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A snapshot of first-time homebuyers

Did you know:
9 out of 10 first-time homebuyers are millenials

41% of first-time homebuyers bought on their own

61% of first-time homebuyers put a down payment of less than 20%

*These results are based on a Genworth Canada 2017 Homeownership Study, conducted from Jan 28 - Feb 9, 2017 which surveyed 1,803 Canadians between the ages of 25-40 to gain deeper insights into Canadian attitudes on homeownership and the financial fitness of today's FTHB. This bi-annual study, first launched in 2015, is relatively consistent with previous result findings. *