Over a Third of Canadians Can’t Pay Their Mortgages Anymore
In a recent survey by The Real Estate and Mortgage Institute of Canada (REMIC), it was revealed that more than a third of Canadian homeowners feel regretful about their current mortgages. With input from over 1,000 participants, the survey not only highlighted this shocking discovery, but also provided insights into the diverse feelings and challenges homeowners are grappling with amidst the recent interest rate hikes. This survey becomes a useful tool to understand how homeowners feel and how to navigate the changing landscape of real estate and mortgages.
Mortgage Worries
More than a third (34.1%) of Canadian homeowners expressed their regret about their current mortgages. Reasons include finding it unaffordable due to interest rate hikes (21.80%) and feeling stuck with unfavourable rates (12.30%). Surprisingly, only about 30% would have chosen a more affordable property if they knew about rising mortgage rates. Moreover, over half of Canadians (59%) admit they don't know the current interest rate in Canada, indicating a lack of awareness among homeowners. This lack of knowledge extends to mortgage payments, with 68.4% uncertain about their payments if the interest rate reaches 5%.
Trusting Banks
More than half of Canadians (57%) trust banks to arrange their mortgages, and 43% believe banks might offer the best mortgage rates. Loyalty is a key factor, with 58.80% trusting that their loyalty as customers will secure them the best rates. However, the survey suggests that blind faith in banks may lead to missed opportunities for better rates.
Mortgage Timelines
A significant 45.2% of Canadians believe they won't pay off their mortgages until reaching the age of 60 or older. This extended timeline raises questions about the long-term financial impact of homeownership and the challenges faced by those planning for retirement. The survey highlights a crucial need for Canadian homebuyers to educate themselves about the basics of mortgages and their lasting financial implications. REMIC's President and CEO, Joe White, emphasizes that a licensed mortgage broker can provide valuable insights and guidance, helping homeowners make informed decisions.
As Canadian homeowners navigate the challenges posed by rising interest rates, the REMIC survey emphasizes the importance of financial awareness in homeownership. Whether you are considering a mortgage for the first time or seeking to refinance, understanding the basics of your financial commitments is key to achieving a secure and balanced future. If you’re looking for help with your mortgage, the TimSold Mortgage Team offers clients a complimentary mortgage consultation with one of our licensed mortgage brokers. They will customize a plan for your transaction and guide you through the mortgage process, and secure the best rate.
Data Source: The Real Estate and Mortgage Institute of Canada (REMIC)
Contact the TimSold Mortgage Team for complimentary mortgage advice and receive the best rates possible today! For more info, please do not hesitate to contact me at 647.930.1888 or email info@timsold.com for all things real estate.
