There is little evidence that Canadian households are being more strained by rising interest rates, according to a recent survey.
A survey by Nanos Research revealed that the majority of Canadians (55%) continue to say higher borrowing costs are either having no impact – or a positive one – on their personal spending, a slight drop from 57% in the October survey. The share of those who reported a negative or somewhat negative impact was 41%, unchanged from the previous survey.
Almost half (46%) of respondents reported no impact from higher interest rates, down from 50% in October. The share of those who see benefits – typically people holding interest-earning assets – was 8.4%, up from 7.5% in the previous survey.
Some economists have warned that the previous rate hikes may already have gone too far. But judging from the latest Nanos survey, according to a Bloomberg report, things are not getting much worse. The net score – the difference between those reporting negative vs. positive impacts – was 32.9%, virtually unchanged from the October reading of 33.2%.
Meanwhile, the survey showed young Canadians are the most likely to be hurt by higher interest rates. Among the 18-to-34-year-old respondents, 51% said higher borrowing costs were curtailing spending. That compares to 42% for those who are aged 35 to 54, and 34% for the 55 and above bracket.
Nanos conducted the hybrid telephone and online survey of 1,000 respondents between Feb. 2 and Feb. 5.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate