A recent report put out by Manulife Bank of Canada has found that just over 16% of Canadians will not be able to afford to pay their debts if their current mortgage payments increase at all. They also found out that nearly 30% would find it difficult to pay their bills within 3 months if the main income provider loses their job.
The results of this survey emphasize that more and more Canadians are finding themselves unprepared to handle a financial emergency. This, in a world of increasing costs and sluggish incomes. Interest rates are at decade lows and so the problem seems to be the increasing cost of housing, driving up higher mortgage costs and therefore the monthly mortgage costs.
The poll also found that 24% surveyed don’t know how much is in their emergency fund, 14% have not set aside any money, and 9% have less than $1,000 saved. The highest group at risk is millennial consumers carrying mortgage debt.
In response to this financial dilemma has been the stress tests required for all insured mortgages to ensure that borrowers would still be able to make their mortgage payments if interest rates rise or their financial situations change.
If you are concerned about the current real estate market in Saskatoon and a rise in interest rates, contact me and I can help navigate you through the uncertain time and ensure you don’t wind up in over your head!
Saskatoon real estate agent
Century 21 Fusion