Nearly 40 per cent of B.C. mortgage holders found it hard to make their mortgage payments over the past year, according to a survey from True North Mortgage.<\/p>\n
While B.C. residents have strong payment histories\u00a0\u2014 88 per cent haven\u2019t missed a mortgage payment \u2014 the survey found that 38 per cent struggled with doing so over the past year.<\/p>\n
Some B.C. residents said they had to make sacrifices to keep up with their mortgage: over 40 per cent delayed or avoided vacations, one-third avoided home repairs or renovations, and 33 per cent delayed or avoided retirement savings or investments.<\/p>\n
At a national level, 83 per cent of Canadian mortgage holders have never missed a payment.<\/p>\n
\u201cEven as Canadians face rising household costs \u2014 from groceries to credit and potentially higher mortgage payments \u2014 homeowners overall remain financially prepared to meet their mortgage obligations,\u201d said Dan Eisner, CEO of True North Mortgage.<\/p>\n
Mortgage rates renewing<\/p>\n
With over one million mortgages set to renew in 2026 \u2014 and experts predicting rates will be higher \u2014 34\u00a0per cent of B.C. mortgage holders said that interest rate uncertainty was their top concern with renewing a mortgage.<\/p>\n
\u201cCanada\u2019s mortgage renewal wave following the pandemic-induced low-rate period was expected to be a shock for homeowners, with some referring to it as a renewal cliff or wall,\u201d reads a release from True North.<\/p>\n
Many Canadians got their mortgages in 2021, when rates were closer to a historic low of two per cent.<\/p>\n
\u201cUncertainty about where interest rates are headed remains the top concern for Canadian mortgage holders with an upcoming renewal (36 per cent) \u2014 understandable, given ongoing economic volatility and geopolitical tensions that continue to cloud the outlook for 2026 mortgage rates.\u201d<\/p>\n
While the majority (68 per cent) of B.C. residents said that their current mortgage rate is manageable, 24 per cent of B.C. households said their mortgage payments could become challenging if their finances changed, and seven per cent said they found it already challenging.<\/p>\n
\u201cMost British Columbians (77 per cent) identified affordability and financial planning as key factors when selecting or renewing a mortgage,\u201d reads the report.<\/p>\n
For B.C. residents who are looking to qualify for a mortgage, 23 per cent said that budget strain is their biggest concern, 13 per cent said it was difficult to qualify based on their income, 11 per cent cited uncertainty around interest rates, and 11 per cent said changes in employment status.<\/p>\n
Despite the affordability challenges associated with homeownership, a recent RBC poll<\/a> found that many B.C. residents see it as both a major life goal and a sign of financial independence.<\/p>\n While 63 per cent of current homeowners in B.C. are concerned about covering the costs of owning a home, over a third of B.C. residents expect to buy a condo or a house in the next two years.<\/p>\n