A recent public opinion poll by Yahoo/Maru suggests that Canadians most affected by rising interest rates are young adults.
The poll conducted between July 21 and 24 found that 52% of young adults are suffering from anxiety due to their borrowing costs. Of the 1,527 Canadians surveyed, 16% responded that they are even “worried sick” about their future financially.
The average annual income of those surveyed ranged from $50,000-$90,000.
Respondents who were feeling the pressures of financial stress were between the ages of 18 to 34 and most commonly resided in Alberta, British Columbia, Manitoba and Saskatchewan.
People from that same age group who live in Ontario and Quebec were less likely to be worried about their financial future.
Those respondents who were above the youngest cohort surveyed were less concerned with the Bank of Canada’s rate hikes.
“Despite the significant rise in interest rates since last October to today, many Canadians have made an adjustment in their lives to manage or accommodate what has occurred,” said John Wright, executive vice-president for Maru. “Those most likely to do so are primarily women, those with both the lowest and the highest incomes, and the oldest Canadians. Regionally, those in Atlantic Canada, Ontario, and Quebec have fared better than those in the west.”
“For that group in dire straits, and for those about to renew their mortgage, there will be great anticipation of what the Bank of Canada will do in September following a pause for two months,” said Wright.
“The next Consumer Price Index release on August 15, may well portend whether there may be a continued reprieve in store.” he said.
A similar poll conducted in October 2022, saw 57% of respondents saying that they were personally impacted by the rising of interest rates. Those who said it was enough to cause them anxiety came in at 39%.
In the 2022 poll, 43% of respondents said that they were not affected by the rising interest rates but in the July poll however that number grew to 48%.
Canada’s central bank raised interest rates by the highest level since 2001, raising their benchmark interest rate by 25 basis points or 5%. Only a year and a half ago, the overnight rate was 0.25%.
On Sept. 6, the Bank of Canada will make their decision on the next interest rate raise.
