The fear of losing homes is real for people set to renegotiate a mortgage at a higher rate. Read more about the results of a recent survey.
The Bank of Canada’s interest rate hikes are causing fear and anxiety among mortgage-holding British Columbians, according to a Leger poll released on Sunday.
The federal bank began raising rates in March as a way to temper inflation. It’s raised the rate five times since, with it now sitting at 3.75 per cent. The next hike is expected on Dec. 7.
The logic is that increasing the cost of borrowing money will lead to reduced demand for goods and services, and a subsequent fall in the rate of inflation. According to the latest report from B.C. Stats, B.C. inflation for October was 7.8 per cent, which is 0.5 per cent higher than September.
So, despite the rate hikes, the cost of goods continues to rise. The cost of grocery-bought food in B.C., for example, is now 10.2 per cent higher than it was in Oct. 2021.
All this news is bad for the 30 per cent of people who have mortgages on their homes, and those that are carrying credit card or line of credit debt, because the banks pass on the Bank of Canada interest rates to consumers.
Read the full article HERE