Interest Rates Affecting Retirement Plans

Vancouver, Toronto, Calgary

2022/12/05

For Canadians retiring with mortgage debt, the likelihood of having to manage higher payments in the near future is a growing concern. The central bank analyzed the potential impact of higher mortgage rates at renewal on 1.4M mortgages with 5-yr terms taken out at banks in 2020-21. The central bank forecasts that mortgage holders will face an avg monthly payment increase of 30% upon renewal. The questions go beyond how they’ll be able to cover higher payments on a fixed income but also to their ability to requalify for a mortgage.