Canada’s Mortgage Rates continued to rise in March, with the Bank of Canada set to raise interest rates in June. However, the affordability of Canada’s real estate market might be switching as well, as lower housing costs, even with higher mortgage rates, have led to smaller mortgage payments.
Canada’s real estate market prices continue to plunge, with multiple cities reporting buyers’ remorse throughout May, especially Toronto home buyers. Though the statistics are not yet in, we’re likely to see a further slowing of the real estate market once May’s statistics are released in the next few weeks.
April saw the average price of a home in Canada fall by $50,000, down to 746k. Even with higher mortgage rates, this still translates into a lower payment for the average price of a house in Canada.
However, mortgage rates are still rising. The real estate market will most likely continue to flip back and forth, between higher and lower mortgage payments, as mortgage rates rise and home prices fall.
Best Insured Mortgage Rate, Fully Featured in March 2022: 3.39 on a Five Year Fixed
Best Insured Mortgage Rate, Fully Featured in April 2022: 3.99 on a Five Year Fixed
Best Insured Mortgage Rate, Fully Featured in May 2022: 4.19 on a Five Year Fixed
Best Insurable Mortgage Rate, Fully Featured in March 2022: 3.59 on a Five Year Fixed
Best Insurable Mortgage Rate, Fully Featured in April 2022: 4.19 on a Five Year Fixed
Best Insurable Mortgage Rate, Fully Featured in May 2022: 4.54 on a Five Year Fixed
Best Uninsurable Mortgage Rate (30 Year AM, Refinancing), Fully Featured in March 2022: 3.49 on a Five Year Fixed
Best Uninsurable Mortgage Rate (30 Year AM, Refinancing), Fully Featured in April 2022: 4.29 on a Five Year Fixed
Best Uninsurable Mortgage Rate (30 Year AM, Refinancing), Fully Featured in May 2022: 4.74 on a Five Year Fixed
A 50-bps rate hike in June is “virtually guaranteed” after April’s hot inflation reading:
Canadian inflation rises to 6.8%: What you need to know:
Bank of Canada rate hikes likely slowing housing demand:
Bank of Canada says rates are too stimulative, downplays 75 bps hike:
Canadian Mortgage Rates May Climb Up To 7% By Next Year: Desjardins:
Greater Toronto Area real estate approaching ‘buyer’s market’: BMO:
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