Close to 25% of Canadian homeowners said if interest rates go up further, they would be forced to sell their homes, according to Manulife Bank’s Debt Survey. .“In the past few years, we’ve seen a huge shift in the housing market, and in parallel we’re witnessing interest rates and inflation rising, all contributing to concerns around Canadian home ownership, affordability and Canadians’ mental health,” said Manulife Bank vice president of sales Lysa Fitzgerald in a Monday press release..The survey said as many as 18% of Canadian homeowners believe they cannot afford the house they own. .According to the survey, fewer than half respondents feel prepared for rising interest rates (46%), inflation (42%), and housing prices (40%). .The survey said 80% of Canadians believe there is an affordability crisis in Canada. It added about 20% of people who have a mortgage expect rising interest rates to affect them. .Indebted Canadians are more likely to report debt is causing them stress, said the survey. Almost 50% of respondents said debt is having a negative impact on their mental health. .The survey said 67% of respondents do not view home-ownership in their local communities as attainable. It went on to say close to 50% of Canadians said they would struggle to handle unexpected expenses or are reconsidering summer vacation plans because of affordability concerns. .“As we move forward, it’s imperative Canadians use resources available to them to talk to certified professionals and find ways to try and become more financially flexible and ensure they’re taking a detailed look at their personal financial plans before making major financial decisions,” said Fitzgerald. .The survey was conducted online by Ipsos with 2,001 Canadians between April 14 and 20. .This survey comes after the Canadian Taxpayers Federation (CTF) confirmed the Canadian government is looking into a home equity tax. .Despite the Canada Mortgage and Housing Corporation saying a home equity tax will not be introduced in Canada, the CTF discovered employees in Prime Minister Justin Trudeau's office met with a group that received funding to produce a report recommending it. .“During the election, Trudeau told voters he wasn’t going to impose a home equity tax, so why are his staff meeting about home equity taxes?” said CTF Federal Director Franco Terrazzano. .“If Trudeau wants Canadians to believe he’s not coming after our homes, then his government should stop acting like it’s considering a home equity tax.”
