According to a survey by the Bank of Canada (BoC), homeowners with variable-rate mortgages are reducing household spending and considering getting a second job. The central bank noted that higher interest rates have had a significant impact on the finances of Canadians, particularly those with variable-rate mortgages. The survey, conducted between May 8 and May 15, revealed that while most mortgage holders believed they could still afford the higher payments, they were more likely than others to seek additional employment. The survey also found that holders of variable-rate mortgages were more inclined to take on second jobs compared to those with fixed-rate mortgages. In response to rising rates, many mortgage holders are cutting back on spending and paying down their principal more quickly. However, the survey indicated significant uncertainty among consumers regarding Canada’s economic growth, with half of respondents expecting a recession within the next year. Additionally, Canada’s chief bank inspector expressed concern regarding the difficulties faced by some homeowners, particularly with the rise of variable-rate mortgages with fixed payments, which he referred to as a “fragility” in the housing system. These mortgages carry a growing risk as payments are rescheduled, and borrowers may face challenges in a few years when all payments have to be rescheduled according to the original amortization table. Statistics Canada reported that mortgage debt in Canada reached $2.1 trillion in March, with an estimated $307 billion held in variable-rate mortgages and $246 billion in mortgages with fixed payments.