Results of a new survey from online mortgage marketplace EveryRate.ca show that most Canadians would struggle with a 15% increase in their housing expenses. The survey was conducted with polling firm Leger in mid-November and asked 1,526 Canadians: “If your mortgage or rent increased by 15%, how long would you be able to manage the increase before deciding to move or sell?”
Key findings included:
- 62% of younger Canadians (18–24) said they could sustain less than six months of higher housing costs, with similar results for those aged 25–34 (63%);
- 66% of low-income households (earning under $60,000 annually) said they couldn’t sustain a 15% housing cost increase for more than six months;
- 63% of renters said they couldn’t manage a 15% increase for six months, compared to 44% of homeowners;
- 60% of families with children said they could not manage increased housing costs, compared to 48% of households without children; and
- 60% of BIPOC respondents said they couldn’t sustain a cost increase beyond six months, compared to 49% of white respondents.
“Now, more than ever, Canadians must prepare for financial uncertainty. It’s not just about cutting costs but taking proactive steps, like getting multiple mortgage quotes and exploring all your options to safeguard your finances,” says Andy Hill, a mortgage expert and co-founder of EveryRate.ca. “We’re looking at over a million fixed-rate mortgages coming up for renewal in 2025. Many of these were locked in at rates under 2%. When they renew at today’s rates, closer to 4% or 4.5%, homeowners could see their monthly payments jump by $200 to $300. It will be a big adjustment, and planning will make all the difference.”
Hill said he founded the mortgage rate comparison site so consumers can understandthe impact different mortgage types can have on their financial health. EveryRate.ca helps folks compare different rates and products.
After conducting a few surveys, Hill said a consistent finding is consumers are seeing economic stress. Everyone has come through a tough economic period where they were unsure how things would turn out.
It also looks like rates will drop a bit, but that will still leave payments higher than before. Should another macroeconomic shock arise, it could be calamitous for many.
As it is, many Canadians are struggling with inflation. Some also must budget for higher-than-usual property tax increases of 6% or more, adding to their housing woes.
“It’s important we don’t see a second wave of inflation,” Hill noted. “It’d be a one-two punch. That one punch hurt a lot of people and left a lasting impression. If we get another one, it’ll be pretty tough.”