A new survey on debt overload finds that nearly one in four homeowners will have to sell if interest rates keep rising. The Manulife Bank of Canada survey, conducted between April 14 and April 20, also found that 18 percent of homeowners polled are already at a stage where they can't afford their homes.

TORONTO – A new survey on debt overload finds that nearly one in four homeowners will have to sell if interest rates keep rising.

The Manulife Bank of Canada survey, conducted between April 14 and April 20, also found that 18 percent of homeowners polled are already at a stage where they can't afford their homes.

Over one in five Canadians expect rising interest rates to have a "significant negative impact" on their overall mortgage, debt and financial situation, the survey found.

The Bank of Canada remains on a rate-hike path as it tries to tame inflation, which is now at a 31-year high at 6.8 percent. On June 1, the central bank increased its key interest rate by half a percentage point to 1.5 per cent, reported Canadian Press.

The Manulife survey also found that two-thirds of Canadians do not view home ownership as affordable in their local community.

Additionally, close to half of indebted Canadians say debt is impacting their mental health, and almost 50 per cent of Canadians say they would struggle to handle surprise expenses.

This report by The Canadian Press was first published June 13, 2022.