According to a survey by the BMO Wealth Institute conducted in June 2015 and entitled Household debt in Canada – the good, the bad and the ugly, the current environment of low interest rates has influenced 23 per cent of Canadians to enter the housing market sooner than planned and 18 per cent were influenced to acquire a larger, more expensive property. In addition, 35 per cent of respondents stated that low interest rates meant that they could pay down their mortgage sooner.
Similarly, 53 per cent of Canadians said they would likely be able to absorb a rise in interest rates that would result in a $500 increase in their monthly mortgage payment, although they may be inconvenienced (27 per cent) or would have to revise their budget (26 per cent). In contrast, 16 per cent of respondents would not be able to afford a higher payment, while 9 per cent said they could easily handle the increase. Finally, 19 per cent of the people surveyed by BMO indicated that they did not have a mortgage.