More than a quarter of Canadians with a mortgage are struggling according to a new report from MNP.
The accountancy firm says that many homeowners with a mortgage could be unable to meet their debt payments if the Bank of Canada increases interest rates, which could be as soon as Wednesday.
The report warns that “three in ten home owners say that they will be faced with financial difficulties if the value of their home goes down,” but even without a drop in value, “27 per cent who have a mortgage agree that they are 'in over their head' with their current mortgage payments.”
The firm says that those with home equity lines of credit are most at risk but for 77 per cent are concerned about their ability to absorb a 1 percentage point increase in interest rates.
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