Feel like you cannot afford your home anymore? You’re not the only one.
Manulife Bank’s 2022 Debt Survey shows high-interest rates, inflation and housing prices leave many Canadians feeling like they can’t afford their home and a twinge of buyer’s regret.
The results show:
If interest rates continue to rise, nearly 25% of homeowners say they will likely need to sell their homes.
1 in 5 homeowners believes they can no longer afford their own house.
Nearly half of Canadians said they struggle to handle unexpected expenses.
Nearly 40% of Canadians do not feel their wages keep up with inflation.
80% of Canadians think there is an affordability crisis in Canada.
The most concerning part is that this survey was taken in the spring before interest rates rose.
It’s normal to have concerns about still being able to afford your own home, especially with a shift in the market with interest rates and inflation rising; however, a better understanding of the housing market and how the economy impacts it can alleviate some of your worries.
Begin by researching the actual impacts of interest rates and inflation. Once you understand how they are connected to housing prices, you can feel more confident in making smart mortgage decisions to help create more wealth.
Have questions, or are you trying to make decisions? Call us; we’re more than happy to help.
Next, it’s time to consider your financial plans, as Canadians are five times more likely than any other country to have their spending exceed income. If you cannot save right now, it’s normal to stress about unexpected expenses like increasing interest rates and currency fluctuations.
Wanting to rethink your budget so you can work on getting out of debt? Read our blog post for some tips.
Bottom Line
With the shift in the housing market, and interest rates going up just last week, it’s normal to worry about your long-term financial future. But feeling like you can’t afford your home should not mean you’ll be forced to sell if interest rates continue to rise. Once you know more about how interest rates work, you’ll have a better idea of how this may impact you, and it will help you feel more in control when it comes time to make any major financial decisions.
Have questions or want to learn more? Consider calling us today.