A new report shows that Canadians are generally satisfied with their current mortgage situation, but could be in trouble if interest rates begin to rise.
The study, by BMO Bank of Montreal, finds that Canadian homeowners are generally "stress-tested," meaning that their budget would be able to handle a 2-point increase in interest rates. In total, 57 percent of respondents indicated that this was the case with their finances. However, 43 percent said they would be left on shaky ground if interest rates rose.
"Stretching the limits of your budget by choosing the maximum amortization period and a minimum down payment leaves you little wiggle room to deal with an unexpected financial challenge," said Katie Archdekin, head of mortgage products for BMO Bank of Montreal.
Some may be considering moving to a smaller house in order to lower their monthly payment obligations, but this can be a daunting decision. Fortunately, there are many options for affordable self storage in Toronto and many other cities that can make this process a bit easier, as homeowners will have a place to keep stuff that won't fit.