Interest rate spike hits Simcoe Muskoka homeowners hard
Many Simcoe Muskoka residents are struggling to get by with the rising cost of living.
As gas prices reach record highs, groceries climb in value, and other everyday essentials see a bump—interest rates are also climbing.
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 per cent.
Two weeks ago, the bank increased its interest rate to 1.5 per cent.
The increase has left some Barrie brokers wondering what the future holds for current and future homeowners just meeting payments.
"Over the next three to five years, what you're going to see are people really starting to struggle when they come up for renewal," said Steph Quenneville, owner and broker of Mortgage Sense.
He said the growing rates could lead to people claiming bankruptcy or, even worse, having their homes foreclosed.
"At renewal, you may not be able to borrow more, so limit your spending in the next little while," said Quenneville from his downtown office.
Amanda Harper has owned her Barrie home since 2016 before the market began to surge in the County. She said as a mother of five children under the age of nine, she needs to be at home to take care of them, relying on her husband's income to pay the mortgage.
"With our mortgage coming up for renewal at some point is definitely a concern," said Harper.
The young mother said they had been forced to cut back on expenses such as groceries and gas. Harper said her husband now bikes to work to save on fuel.
"Do I think we will have to sell our house? No. But I do think it will make it harder," she said.
Manulife Bank of Canada recently released a study suggesting nearly one in four homeowners worry they will have to sell their home if interest rates continue to climb.
The survey taken over seven days in April found that 18 per cent of homeowners polled are already struggling to afford their homes.
With files from The Canadian Press
CTVNews.ca Top Stories
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
Northern Ont. lawyer who abandoned clients in child protection cases disbarred
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Maple Leafs fall to Bruins in Game 3, trail series 2-1
Brad Marchand scored twice, including the winner in the third period, and added an assist as the Boston Bruins downed the Toronto Maple Leafs 4-2 to take a 2-1 lead in their first-round playoff series Wednesday
Cuban government apologizes to Montreal-area family after delivering wrong body
Cuba's foreign affairs minister has apologized to a Montreal-area family after they were sent the wrong body following the death of a loved one.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
New Indigenous loan guarantee program a 'really big deal,' Freeland says at Toronto conference
Canada's Deputy Prime Minister Chrystia Freeland was among the 1,700 delegates attending the two-day First Nations Major Projects Coalition (FNMPC) conference that concluded Tuesday in Toronto.
'Life was not fair to him': Daughter of N.B. man exonerated of murder remembers him as a kind soul
The daughter of a New Brunswick man recently exonerated from murder, is remembering her father as somebody who, despite a wrongful conviction, never became bitter or angry.