Younger Canadians lack appreciation of low rates

While mortgage interest rates have hit historic lows, a considerable percentage of younger Canadians don't have an understanding of how they compare to prior years, a new survey reveals.

The poll, conducted by Manulife Bank of Canada, found that many Canadians between the ages of 30 and 39 incorrectly responded when asked to compare today's interest rates with where they've been in the past. For instance, one in three said today's rates were average or relatively high.

Doug Conick, president and CEO of Manulife, said the findings are distressing.

"It's concerning that many younger homeowners believe today's interest rates are normal when, in fact, they are at near historic lows," said Conick. "These younger homeowners may be taking on more debt than they will be able to afford if interest rates rise."

While interest rates can increase, the Royal Bank of Canada recently announced it was keeping rates the same for the foreseeable future due to global financial market instability.