If you’re a Canadian homeowner, you’ve probably noticed costs creeping up just about everywhere. From groceries to gas, inflation has left very few areas untouched. But there’s another pressure point that’s not always in plain sight: healthcare costs—and yes, they’re starting to affect home buying and borrowing decisions more than many realize.
Last week, a story broke about Maya Carvalho, a woman from Toronto who launched the Canadian Migraine Society after years of struggling with underwhelming treatment options for her chronic migraines. Now you might be wondering—what does this have to do with real estate? Surprisingly, quite a bit. Her story shines a light on rising personal health expenses, which increasingly factor into how Canadians approach large financial commitments like mortgages.
Health Costs: A Growing Slice of Monthly Budgets
Let’s face it—Canadians often assume their healthcare needs are fully covered. But in practice, specialized treatments, dental care, vision, therapy, and drug costs are often out-of-pocket—or require private insurance.
For families and individuals dealing with chronic conditions—like Maya—these expenses can be unpredictable and expensive. Migraine medications alone can run upwards of $600 a month, not to mention time off work and specialist visits. For homeowners in the 30 to 55 age range, health-related costs are increasingly competing with mortgage payments in their monthly budgets.
According to a recent report from the Canadian Institute for Health Information, out-of-pocket health spending rose by over 4% in 2023, with no signs of slowing. That’s money that might otherwise go toward paying down a mortgage, saving for a down payment, or dealing with rising interest rates.
Interest Rates and Financial Flexibility
Now layer on the most obvious stressor: interest rates. The Bank of Canada has tightened rates since March 2022 to tame inflation, and while we’re starting to see some relief, people are still adjusting. As of June 2024, the prime rate sits at 6.95%, making borrowing more expensive across the board.
Many households that locked in ultra-low mortgage rates in 2020 or 2021 are now facing renewals at significantly higher rates. That’s a tough pill to swallow if you’re simultaneously grappling with unexpected medical bills. This financial squeeze isn’t just theoretical—it shapes real decisions. I’ve met clients who delayed upgrading to a larger home because their child’s therapy costs had increased. Others refinanced their homes to fund urgent surgeries not covered by provincial plans.
Exploring options like a mortgage refinance can open up room in your budget—but only if handled strategically. Transparency on all monthly commitments, including health-related ones, is more crucial than ever when making financing decisions.
Home Equity as a Lifeline
Here’s the silver lining: your home can provide a financial buffer in trying times. Products like a Home Equity Line of Credit (HELOC) or a reverse mortgage can give homeowners access to significant cash flow without needing to sell or downsize.
These aren’t solutions to jump into lightly, but for someone like Maya—who may deal with decades of chronic illness—tapping into home equity can fund both treatments and life needs. In fact, reports from the CMHC show a modest rise in the number of Canadians over 40 using home equity for healthcare expenses.
As medical innovations (often not covered by public plans) become available, more households may lean on home equity to access them. Just as healthcare has evolved, so too does the way Canadians think about their homes—as not just places to live, but financial tools supporting quality of life.
Homeownership Under Pressure
When we talk about affordability in the housing market, the focus tends to stay on prices and rates. But affordability also involves the hidden pressures within households—health costs being a major variable that’s often ignored in mainstream analyses.
According to the Canadian Real Estate Association, national home sales declined by 1.7% in May 2024, even though prices stabilized. Demand isn’t dropping due to pricing alone—it’s also being influenced by rising household expenses outside the housing sector.
That’s why conversations around budgeting for a home should include more than just principal and interest. A good mortgage broker will look at the entire financial picture, including recurring expenses like health care, to ensure you’re not just approved—but sustainable.
Canadians are becoming more cautious, not only because of what’s happening in the real estate market but also due to softer financial risks, like health volatility. And when you think about this in tandem with a softening yet stubbornly expensive housing market, it starts to make sense why people like Maya are stepping into advocacy roles—not just for better health outcomes, but also for broader financial wellness.
Conclusion: Mortgages and Well-Being Are More Connected Than Ever
Maya Carvalho’s mission to improve migraine care is worthy on its own—but it also points to an important shift. As health costs quietly creep into more Canadians’ financial lives, we’re starting to see their ripple effects across housing and borrowing behaviours.
If you’re feeling stretched by a mortgage and other life expenses, you’re not alone. But it’s not just about numbers—it’s about aligning your financial strategy with your health and lifestyle needs.
Whether you’re renewing, refinancing, or just trying to make your next move, talking to a broker who sees the big picture helps. We’ll make sure your mortgage isn’t just competitive—it’s compatible with real life.
Explore today’s best mortgage rates to see what’s possible when your mortgage fits you, not the other way around.
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