top of page
Search

MORTGAGE RATES ARE SET TO RISE

  • Writer: Laurie & Shapoor
    Laurie & Shapoor
  • Aug 17, 2021
  • 1 min read

Low mortgage interest rates help entice buyers to make a home purchase. That’s certainly been the case in Canada in recent months. However, mortgage rates are poised to creep up this year and next year, and even into 2023.

An analysis from Mortgage Sandbox indicates five-year Canadian mortgage rates are expected to remain low by historical standards, but they are expected to continue rising in 2022 and 2023. The analysis indicates the fixed rate for a five-year mortgage could climb to 3% in the third quarter of 2022.

Low mortgage rates typically make it easier for homebuyers to qualify for a mortgage, as well. But on June 1, the Office of the Superintendent of Financial Institutions raised the mortgage “stress test” qualifying rate from 4.79% to 5.25%.

According to the Toronto Sun, “It was intended in part to slow down the overheated housing market and likely in part because inflation (and higher interest rates) are on the horizon.”

In a recent report, the British Columbia Real Estate Association forecast, “rising Canadian inflation — and the extent to which that inflation is a temporary phenomenon — is set to shape how rates evolve over the next year.”

What does it mean for you?

Given the prospect that Canadian mortgage rates may go up during the rest of this year and into 2022, now might be the right time to think about borrowing money to buy a home. When interest rates rise, you pay more to borrow money. Whether you’re buying a new home or up for a renewal, you can lower your risk by locking in a fixed-rate rather than variable-rate mortgage.

 
 
 

コメント


LS-6.png

info@YourMontrealRealtors.com

6600 Aut. Transcanadienne, Suite 203, Point-Claire, QC H9R 4S2

The comments contained on this site are for information purposes only and do not constitute legal advice.

This website is not intended to solicit currently listed properties.  
Les commentaires contenus sur ce site sont à des fins d'information seulement et ne constituent pas des conseils juridiques.

Non destiné à la sollicitation de propriétés déjà inscrites.

Your Montreal Realtors ©2024

.....

BLVD Transparent (black).png
QR-Google Page.png

Google Reviews

bottom of page