A recent survey by Leger reveals that younger Canadian homeowners are experiencing significant financial stress. According to the survey, 68% of mortgage holders aged 18 to 34 feel financially strained, compared to 62% of all homeowners.
This comes in the wake of the Bank of Canada’s recent interest rate cut, aimed at providing relief after a peak lending rate of 5% during the fight against inflation. The survey indicates that 40% of Canadians believe the Bank should proceed cautiously with further rate cuts, while 33% think the cuts should be accelerated. Higher-income households, earning over $100,000 per year, are more likely to support a cautious approach.
The survey also sheds light on mortgage preferences. It found that 77% of respondents have fixed-rate mortgages, with 43% of these set for renewal this year or next. Two-thirds of these homeowners plan to stick with fixed rates, while younger homeowners are more inclined to opt for variable rates.
The survey, conducted online between June 7 and June 9, 2024, included 1,528 Canadians. Due to the nature of online surveys, they do not have a margin of error as they do not randomly sample the population.