A new survey conducted by Ipsos for MNP shows that nearly half of Canadian households aren’t prepared for further interest rate hikes, and have a very thin financial margin for error every month.
Additionally, one in three households already say they are seeing the impact of the right hikes that have taken place.
As noted by BNN, “Forty-two per cent of respondents said they don’t think they can cover basic expenses over the next year without going deeper into more debt. The same number said they’re within $200 of not being able to cover monthly expenses.”
It’s even worse in some regions of the country.
In Alberta, more than half of respondents say they will have more concerns about their ability to pay off debt if interest rates rise. Concern is lowest in Ontario, though 44% of respondents there are still concerned about being able to reduce their debt levels if interest rates go up.
These results – particularly how many Canadians have barely any financial room every month – show the continued weakness within Canada’s economy.
Overburdened Canadians face higher taxes, more government restrictions, and a rising cost of living, even as wages remain stagnant when inflation is considered. Until that changes, the vulnerability of Canadian households, and the vulnerability of the overall Canadian economy will grow.