While mortgage payments may seem like the biggest financial stress for Canadian homeowners, they are also struggling to afford everyday necessities like groceries.
That's according to new data released today by the Angus Reid Forum, in partnership with Toronto-based mortgage lender Bloom Finance.
The survey results show that a significant proportion of Canadian homeowners (42%) say everyday necessities such as groceries and gasoline are their main financial challenge, followed by unexpected expenses (20%) and mortgage payments (11%).
Looking at the data by province, Quebec homeowners were found to have the hardest time preparing for unexpected expenses (25 per cent), compared to the national average of 20 per cent.
Meanwhile, residents of Alberta (51%) and Manitoba (50%) reported experiencing the most difficulties with gasoline and grocery costs compared to other provinces.
Canadian Gen X homeowners are more affected by rising everyday housing costs, with 46 per cent of respondents aged 55 and over saying they are struggling with rising grocery and gas prices compared to those aged 18-34 (41 per cent) and 34-54 (39 per cent) who are not.
The news comes after the Bank of Canada (BoC) finally announced its decision to cut interest rates to 4.75% in June after keeping them on hold for six consecutive periods.
While the Bank of Canada said its decision was based on “continued evidence that underlying inflation is easing” in the country, many Canadians continue to feel strong economic pressure on their wallets.
Despite the continuing rise in the cost of living, a recent report from RBC predicts some economic relief for Canadians in the future.
“Home affordability could improve sooner than expected if long-term interest rates ease ahead of any central bank policy shift and household income growth remains strong,” the bank said in an April report.
Still, RBC doesn't want us to get our hopes up too high: The report says any room for improvement over the next 12 months will be small compared to the “dramatic loss in homebuying ability” that has hit Canadians during the pandemic.
From the files of Isabel Doct
