A majority of Canadians with mortgages are finding it difficult to manage their household finances, according to a federal study that highlights growing reliance on high-interest credit cards and rising financial pressure linked to housing costs.The Financial Consumer Agency of Canada reports that two thirds of mortgage holders are struggling to meet financial obligations, while more than one third of Canadians — 35.5% — currently have a mortgage. Renters, who make up 41% of the population, are also facing difficulty keeping up with their expenses..Blacklock's Reporter says the findings come from the Evaluation Of The ‘Make Change That Counts: Housing Costs On Your Mind’ campaign, based on surveys with 2,010 people and commissioned by the agency at a cost of $27,877 to Léger Marketing Inc.Researchers warn that the number of highly indebted households continues to rise on top of historically high debt levels. “Given the significant increase in house prices since 2020, a growing number of households have taken out sizeable mortgages relative to their income,” said the report. Many of these recent homebuyers now lack the equity to borrow against their property and would face limited credit access if incomes decline..In the past year, more homeowners have turned to credit card debt — often at 19% to 20% interest rates — to cover expenses. This trend is expected to worsen as interest rate hikes begin to affect mortgage renewals.Through 2025, an estimated 2.2 million Canadian mortgages — about 45% of all outstanding loans — will be impacted by rate increases. By the end of 2026, nearly every mortgage holder will face higher payments.The warning echoes recent comments by Canada’s Superintendent of Financial Institutions, Peter Routledge, who told Parliament that some homeowners could see their monthly mortgage payments jump by about 50%. “That is a very significant shock to monthly finances and one we are very concerned about,” Routledge said.
