Homeowners with variable-rate mortgages are cutting back on household spending and planning to look for a second job, according to a survey by the Bank of Canada (BoC).
The central bank said on June 30 that higher interest rates have weighed heavily on the finances of Canadians, with the impact “more acute” for homeowners with variable-rate mortgages, according to Blacklock’s Reporter.
“Interest rates on our variable-rate mortgage went from 2.6 percent to 6 percent,” said one respondent, cited in the bank’s report, titled “Canadian Survey of Consumer Expectations—Second Quarter of 2023.”
“This is a huge increase. We are not able to go out to restaurants anymore or go on vacations because we need to be able to pay for our mortgage.”…