Stress Test Impacts Measured

The government’s latest mortgage rule changes have caused an imbalance between supply and demand in almost every region of the country, and will result in an estimated 200,000 fewer jobs being created over the next three years. Those are among the findings of Mortgage Professionals Canada’s newly released Report on the Housing and Mortgage Market…

National Home Sales at Five-Year Low

National home sales fell 10.7% to a five-year low in June, the Canadian Real Estate Association reported. Prices have also softened by 1.3% to an average of $496,000, ($389,000, once the Greater Vancouver and Toronto areas are excluded). The situation has improved on a monthly basis, with home sales rising 4.1% since May, marking the…

After the Hike: Fixed or Variable?

It’s the perennial question homebuyers ask themselves and one that’s getting a lot of attention these days: should I go fixed or variable? And the answer may have just become a little more complicated now that the Bank of Canada (BoC) has raised its overnight target rate to 1.50%. The rate increase, which affects variable…

The Latest in Mortgage News – All Eyes on the BoC

For those with a vested interest in mortgage rates—particularly variable-rate mortgage holders—tomorrow’s Bank of Canada rate decision has become one of the most-anticipated financial events of the quarter. Expectations of a rate hike have seesawed from a near certainty to a coin toss and back to a sound bet. Markets are currently 92% priced in…

Interest Rate Hikes Eroding Housing Affordability

After improving slightly late last year, housing affordability has now reached “crisis levels” in Vancouver and is posing a “tremendous challenge” in Toronto. That’s the assessment from RBC’s latest Housing Trends and Affordability report, which says higher interest rates are the main reason for a deterioration in affordability right across the country. “The winning streak…