One-third of Canadian mortgage-holders are not concerned about their ability to make payments if interest rates rise, according to a recent survey by Investors Group, while four in ten respondents said it would take at least a three per cent rate hike before they began to worry.
"Canadians appear to have both feet on the ground through these ups and downs, but everyone needs to ensure their confidence is aligned with reality," said Peter Veselinovich, vice-president, banking and mortgage operations at Investors Group.
The sample's median outstanding mortgage balance was about $130,000. With a 25-year amortization, a three per cent rate increase would add over $200 to monthly payments on that balance, $70,000 over the course of the mortgage, the survey said.
Despite the survey's results, other homeowners are more than willing to part with their property. Nearly 100,000 new listings were posted last month, the busiest March on record according to the CREA. Over 230,000 listings have been added since the beginning of 2010, amounting to the most for any first quarter. However, the number of listings is still down nine per cent nationally from last year.