Rising mortgage rates spooked homebuyers
May 19, 2023
After a year of quickly rising interest rates, many mortgage consumers are struggling to make ends meet and to manage debt, as indicated in the 2023 Mortgage Consumer Survey released May 12 by Canada Mortgage and Housing Corporation (CMHC).
Seventy-four percent of respondents said they are impacted or anticipate being impacted by the rise of mortgage interest rates. Of those affected, 49 per cent face difficulty maintaining debt payments, including mortgages.
These challenges are changing how consumers feel about the mortgage buying experience, with consumer perceptions hitting their lowest level in the last five years, the survey found.
In January 2023 CMHC surveyed more than 4,000 recent mortgage consumers across Canada to gain key insights into the current state of home ownership, mortgage lending, and the expectations and experiences of buyers.
Results show that market conditions in 2022 had a big impact on how borrowers felt about their experience with their broker or lender—overall satisfaction was down.
Survey results also indicate that 61 per cent of first-time and repeat buyers are feeling uncertain about the homebuying process. Both groups cite paying too much for their home as their top concern. These results also show a notable effort to improve the energy efficiency of homes. Energy efficient updates are stated as the third most popular reason to renovate and represent approximately 60 per cent of renovation costs. As well, 59 per cent of homebuyers stated energy efficiency was an important factor in their home purchasing decision.