High Interest Rates Take a Toll on Canadians’ Love Lives

High Interest Rates Take a Toll on Canadians’ Love Lives

In a surprising twist, high interest rates are now making waves in romance. According to a recent survey conducted by 360Lending, almost 50% of Canadians believe these soaring rates negatively impact their love lives. 

The Debt Dilemma

The survey reveals that 52.1% of Canadians plan to reduce their spending on their significant other this Valentine’s Day due to the stress of rent or mortgage payments over the past year.

As interest rates climb, so does the burden of debt. Many Canadians find themselves juggling mortgages, car loans, and credit card balances—all while trying to maintain a healthy relationship. The strain is real, affecting more than just their bank accounts.

Date Night Dilemmas

A significant 67.3% of respondents indicated they would consider, or are likely to, forego celebrating Valentine’s Day with their partner to save for a mortgage downpayment.

Remember those cozy date nights? Well, they’re taking a hit. With higher interest payments, couples are cutting back on dining out, movie nights, and weekend getaways. Budget-friendly home-cooked meals are replacing candlelit dinners. The silver lining? Cooking together can be surprisingly romantic.

Mortgage Renewal Blues 

For those renewing their mortgages, the outlook isn’t rosy. Approximately 40% of mortgage holders have already faced higher rates during renewals. The financial stress spills over into relationships as couples grapple with tighter budgets and postponed dreams.

Love in the Time of Inflation

The spectre of inflation looms large. While central banks grapple with policy decisions, couples grapple with their dilemmas. Will they prioritize paying off debt or investing in their relationship? It’s a balancing act that’s testing their commitment.

nesto’s Take

360Lending’s survey found that a staggering 80% of Canadian homebuyers prefer to save money for a downpayment rather than tie the knot. This Valentine’s Day, we decided to look into our data at nesto to see if romance is taking a backseat in the mortgage world.

Our findings were quite revealing. Between February 2023 and February 2024, 76% of nesto mortgage applicants identified as single, with only 24% reporting marriage. Interestingly, over half of nesto’s base reported being in a common-law marriage in Quebec.

When we looked at co-applicants, the majority (64%) reported being married, while 36% were single. In contrast, among solo applicants, a whopping 81% reported being single, with only 19% being married.

Furthermore, our data showed that, on average, solo applicants tend to contribute larger downpayments than co-applicants. This suggests that while love may be in the air this February, financial independence and homeownership remain top priorities for many Canadians.

The Ripple Effect

Surprisingly, almost half of Canadians, precisely 44.5%, prioritize saving for a house or condominium downpayment over being in love.

Beyond candlelit dinners and postponed vacations, the impact extends to emotional well-being. Stress over finances can strain relationships, leading to arguments and sleepless nights. Couples are navigating this rocky terrain, hoping for a brighter financial future. 
High interest rates aren’t just numbers on a screen—they’re affecting the fabric of Canadian relationships. As the Bank of Canada deliberates its next moves, couples wonder: Can love conquer all, even in a world of rising interest rates? Only time will tell, but while you wait, speak with a mortgage expert who could provide you with an objective mortgage strategy that works with your as well as your partner’s financial plans.  📈💔