CTV NEWS – Real Estate Regrets | August 23, 2023

Clinton Wilkins talks with  CTV’s Jesse Thomas about the current state of mortgage malaise amongst homeowners, due to increasing rates.

Maria Panopalis 00:00
First at five tonight: real estate regret.

Katie Kelly 00:02
That’s what many homeowners are experiencing these days, according to a new survey.

Maria Panopalis 00:07
Rising costs and interest rates are overwhelming many Canadians. CTV’s Jesse Thomas joins us now with more on the growing mortgage malaise.

Jessie Thomas 00:17
Hi, Maria. Hi, Katie. With inflation rising, there’s a chance that interest rates could go up again, putting even more pressure on families who are having to make some tough decisions have a look.

Homeowners are reassessing their situations

Jessie Thomas 00:29
Clinton Wilkins knows times are tough as a mortgage broker. A lot of his clients are looking for help with their increasing rates.

Clinton Wilkins 00:36
I think people are stressed. Clients are assessing: can they stay in their home? Financially does it make sense? Does it make sense to list their home?

Jessie Thomas 00:43
The Bank of Canada hasn’t signaled whether it’ll raise its key interest rates beyond the current 5% figure. Either way, Maggie White is feeling the pressure just by working a full time job in the aerospace sector. Wade took on a second job as a cashier to afford her mortgage.

Maggie White 01:00
And then it just started increasing and increasing and by the time June came around of this year, our payments were more so $2300 a month.

Jessie Thomas 01:13
White and her husband couldn’t handle the constant increases to their variable mortgage and eventually locked in with a long term fixed rate this summer, but it’s still overwhelming.

Maggie White 01:22
Our mortgage rate like I’m hoping I won’t have to continue doing two jobs. But even with that, our mortgage rate is still high, as opposed to what it was last year. So I may have to continue this into the new year.

Increasing rates have led to regrets amongst homeowners

Jessie Thomas 01:37
White isn’t alone. According to a new survey, many are feeling a sense of mortgage malaise. The real estate and mortgage Institute of Canada finds that 34% of Canadians regret the mortgage they are in. While 22% Say interest rate hikes have made their mortgage unaffordable and 12% regret being locked in a bad rate.

Joe White 01:56
It’s one thing to look at, yeah, payments are increasing by X percent. It’s another thing to look at individuals who are being stressed out over this and causing potentially, you know, cracks in the family unit because of these financial stressors.

Jessie Thomas 02:14
In Halifax, there’s such a housing shortage that if homeowners want to downsize, there’s not a lot of affordable options.

Still in a seller’s market in Halifax

Clinton Wilkins 02:20
But you know, I think it’s still very hot. And I think that we’re still in a seller’s market here in Halifax. That’s certainly not the case across the country. I can tell you there’s certainly reports coming out of Ontario, Alberta and BC that their housing market is down, you know, 30 to 50% in terms of activity.

Jessie Thomas 02:39
And the advice from both mortgage experts that we spoke with is to do your homework, and to get an expert and really exhaust all of your financial options for your mortgage. But don’t avoid it. Katie and Maria cause that could be a costly and expensive mistake.

Maria Panopalis 02:55
Oh yeah. Every month counts. CTVs Jessie Thomas joins us from Halifax. Thank you, Jesse. Yeah, every minute counts.

Katie Kelly 03:02
It sure does and that is what brings us to tonight’s web poll. We’re asking you where are you concerned about interest rate hikes and your mortgage? Your options are yes, my payments are getting too high. No, I can still afford my current mortgage. I don’t own a home to weigh in and see past poll results. You can head over to CTV News atlantic.ca