Canadians worried about mortgages if interest rates rise
Posted February 24, 2011 7:59 am.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – Almost one-fifth of Canadians aren’t sure they’ll be able to make their mortgage payments if interest rates go up.
The Bank of Canada is expected to raise its benchmark rate by one per cent this year. That’s not a huge strain, but research from BMO says homeowners should be ready for when rates return to historic norms.
The bank is urging people to “stress-test” their mortgages using a payment based on a higher rate to make sure they can continue to pay.
It adds total expenses should not be more than one third of total household income.