Forty-seven percent of respondents said rising rates could mean financial trouble for them and more than a third believed they would be pushed closer to bankruptcy.
Six in 10 Canadians with mortgages due for renewal this year are worried they could get into financial trouble if rates go up too high. Those with variable rates may face significant increases.
Other borrowers are also concerned, including 75% of people who have borrowed money they can’t pay back quickly and the same proportion of people who only make minimum payments on a credit card or personal line of credit. .
“As we look forward to the first of several interest rate hikes in the coming year, more Canadians are concerned about how they will cope,” says Grant Bazian, president of MNP Ltd., the country’s largest insolvency firm. “The most vulnerable are those who have taken loans to get loans and are not able to repay the loans. The additional debt servicing costs come at a time when many Canadians are already finding it less affordable to feed their families or pay for things like housing.
Young Canadians more concerned
The survey conducted by Ipsos shows that Canadians aged 18-34 are most likely to be concerned about the impact of rising rates on their financial situation.