Nearly a third of Alberta mortgage holders find their current interest rate unmanageable, according to a new survey by Alberta-based True North Mortgage. While 70 per cent of respondents in the province reported that their mortgage rate is manageable, the remaining 30 per cent face challenges. Among those struggling, about one-third said payments could become difficult if their financial circumstances change, while the rest indicated their situation is already strained.
Interest Rate Uncertainty Tops Concerns
Future interest rates are the top concern for 43 per cent of Albertans, compared with only 15 per cent nationally. This heightened anxiety reflects the wave of mortgage renewals occurring at higher rates following the pandemic era of record-low borrowing costs. Among those worried about rate direction, a little more than one in four fear higher-than-expected payments upon renewal. Roughly one in six find the decision between fixed and variable rates stressful.
Budget Strain and Financial Goals
About eight per cent of all respondents said renewals are straining their budgets, and a similar share reported anxiety over higher mortgage costs affecting other financial goals. Despite these pressures, 79 per cent of Alberta mortgage holders have never missed a payment, slightly below the national average of 83 per cent.
Albertans also lag behind the rest of Canada in viewing homeownership as a stable, long-term investment. Only 59 per cent in Alberta agreed, versus 62 per cent nationally. The survey highlights the unique challenges faced by Alberta homeowners in the current economic climate, with interest rate uncertainty looming large.
