If interest rates rise significantly, it will probably reduce Ontario home prices as it will make mortgages less affordable, flatten sales and create more competition among sellers for the remaining buyers out there.
If you have a variable rate mortgage, expect mortgage rate increases to increase your monthly payment. If you have a fixed rate mortgage and are soon due for renewal, you will be facing higher interest rates to choose from, and higher payments there as well.
The Bank of Canada decided not to raise interest rates on Tuesday. They kept their overnight rate at 1%. On Wednesday the BoC spoke more about the state of the Canadian economy. The newspapers and economist dissected the works of Mark Carney and determined that he removed the word “eventually” from his comments about when [...]
In: Real Estate News17 Jun 2011
This week Mark Carney gave a speech to the Vancouver Board of Trade. Whenever Mark Carney talks, people listen. Of course listening is just the first step. After listening to what he says, you need to dissect the words carefully and try to extrapolate, or infer his meaning. Mark Carney will never say “housing bubble”. [...]
Mortgage interest rates have been pleasing to the pocket book of many for a while now so can we expect them to rise any time soon? And if and when they do, how high might they go and what will happen to the real estate market when they do? Should we buy or sell our [...]
We have had a fast correction in real estate in Canada. No evidence that we are going to have the collapse currently going on in the United States. Canada is currently running at record low interest rates so everyone needs to pay attention to interest rate announcements before contemplating a new home purchase. Happy house [...]
The Canadian Press recently published an interesting article called ‘Float or Fix’ – a look at the decision homebuyers face in choosing a fixed or variable mortgage rate. With the recent interest rate hike by the Bank of Canada, and several more called for in the coming two years, the question becomes ever more pertinent. [...]
The Bank of Canada announced a quarter-point hike in its key interest rate this week, and warns that more increases are still to come. By early 2008, the Bank projects interest rates will increase another three-quarter points, bringing the overnight rate to 5.25. The current rate is now 4.5. This is bad news for mortgage-holders, [...]
Real estate news in Canada including buy and sell information, local market updates, guides, tips for Canadians in the real estate market.