An interest rate decision from the Bank of Canada is due out on Wednesday and there have been strong signals of a possible increase.
That could be bad news for many Canadians.
According to a new survey from MNP LTD, one quarter of Canadians with a mortgage feel they're "in over their head" with their current payments. More than 70% say their ability to cope with a 1% interest rate increase as less than optimal.
"Many are borrowing against their homes and using them to finance lifestyles they simply can't afford. What's worse is that many are not making regular payments against the principal, and the threat of an increase in interest rates might make it even harder to make ends meet," MNP President, Grant Bazian, says in a news release.