A recent survey shows that many Canadians are worried about affording their housing payments, about 25% might need to sell their home if the rates continue to rise.
Already, we have seen a sort of slowdown with price reductions rising in some places like Toronto over the last several weeks.
While financial experts have suggested that they might be looking to increase those rates to tackle the current inflation environment many Canadians are worried about what consequences this might have for them and the affordability of their homes.
Some critics have suggested that perhaps a potential solution might be to only increase rates for those who own multiple dwellings and not for those with one property who are residing in their forever home.
There is worry about increasing rates harming both speculators and end users.
In 2021 it was reported that Canadians had record high mortgage debt and this grew by billions through the pandemic.
In BC we have seen the price of many goods go up, from food to gas and more, and rent has also been climbing which is a nightmare for those who don’t own and have limited options.
There has been a crisis with affordable housing units around the country in places like Vancouver and Toronto for years now that does seem to be getting worse. The increasing costs are reportedly making it more difficult for Canadians to afford the things that they need, trying to maintain their mortgage and buy food etc.
One recent poll from the Angus-Reid Institute found that almost 60% of Canadians with a mortgage say that they are already feeling that pressure and further squeeze to their budgets.
Renters are also saying the same in that they too are feeling the financial stress, especially those who lose their affordable housing. When those BC renters lose their housing due to the property being sold to a development company this then forces those renters back into the market looking for housing, meanwhile rent in Vancouver has increased roughly 15% since last year, according to Zumper.
Rent has increased in cities all around the province and as a result it is becoming more unaffordable. Already there are many British Columbians out there who are trying to tackle with spending 50% or more of their income on shelter alone. Metro Vancouver rent has been reported to be the highest in the country.
60% of Canadians say they are worried about inflation
Inflation is one of the top issues for Canadians today, the affordability of life in Canada matters to millions and that issue isn’t going away so long as Canadians maintain that concern and look for Canadian political leaders to do something about it.