One in four homeowners will have to sell their home if interest rates rise

According to the poll, more than one in five Canadians expect rising interest rates to have a “significant negative impact” on their mortgage, debt and financial situation. (Photo: The Canadian Press)

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Toronto — Nearly one in four homeowners say they will have to sell their homes if interest rates rise further, according to a new debt survey from Manulife Bank of Canada.

The survey, conducted between April 14 and 20, also found that 18% of homeowners surveyed are already at a stage where they cannot afford their homes.

According to the poll, more than one in five Canadians expect rising interest rates to have a “significant negative impact” on their mortgage, debt and financial situation.

The Bank of Canada remains on a rate hike path as it attempts to rein in inflation, which is now at 6.8%, its highest level in 31 years. On June 1, the central bank raised its key rate by half a percentage point to 1.5%.

The Manulife survey also revealed that two-thirds of Canadians do not consider home ownership affordable in their local community.

Additionally, nearly half of Canadians in debt say debt has an impact on their mental health, and nearly 50% of Canadians say they would struggle to cope with unexpected expenses.

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