Nearly one in four homeowners with a mortgage say they may have to sell if rates keep rising

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Nearly one in four homeowners with a mortgage say they may have to sell if rates keep rising
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Nearly one in four homeowners with mortgages, or 23 per cent, believe they may be forced to sell if interest rates increase further, according to a new survey released Monday by Manulife Bank.

The report, which surveyed more than 2,000 Canadians, also found that 18 per cent of individuals with a mortgage already feel they can no longer afford the home they own, citing rising interest rates, inflation, or the overall cost of living.

“This large statistical increase that is observed relative to previous waves is likely attributable, in no small part, to rising interest rates and inflation,” the report reads. Ian Calvert, vice-president and principal at HighView Financial Group, said a combination of low interest rates along with the increase in home values over the past few years encouraged a lot of debt among Canadians.

Simeon Papailias, a real estate agent and co-founder of REC Canada, said about eight in 10 home buyers he has dealt with over the past two years have taken advantage of the low interest rates and signed a variable-rate mortgage. However, he said more clients are now inquiring about locking in fixed-rate mortgages, especially as interest rates continue to increase.

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