Thursday, March 29, 2012

Interest Rate Exposed Canadian Mortgage Holders

With a 2% rise in interest rates (which would still leave it well below long term average)
57% of Canadian Homeowners could afford their house
20% said it would significantly hamper owning their home
23% didn't know

First off, ~28% of Canadian Homeowners don't have a mortgage, so I'd really hope that rising rates don't affect them. Take them off that first number as a freebie and we are left with 29% of homeowners who are mortgage holders who didn't over extend, or a mere 50% more are feeling secure relative to those feeling insecure. That's a pretty terrible ratio. Also 23% don't know? Let's hope some of these financially ignorant respondents actually belong in the own outright category and things aren't as bad as they look based on this skimming glance at the situation.

 BMO Homeownership Stress-Test Report: Are Canadian Homeowners Prepared Financially for Rising Rates?
Stress tested homeowners by province. Chart from BMO.
Note that the stressed and unsure outnumber the comfortable in BC.

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