๐ก๐ผ,ย ๐๐ฎ๐ป๐ฎ๐ฑ๐ถ๐ฎ๐ป๐ย ๐ฎ๐ฟ๐ฒย ๐ป๐ผ๐ย ๐ฎ๐ย ๐ฟ๐ถ๐๐ธ.
70% of Canadians donโt have a mortgage.
Less than 20% of mortgage borrowers were able to take advantage of falling rates.
Of the 20%, Canadians have been stress tested to qualify for their mortgages at 5.25%. We have been prepared as best as possible for the upcoming rate increases. Under these rules, fixed mortgage rates would have to rise to 3.25% for buyer pre-approval ceilings to change.
80% of borrowers signed their existing mortgages at higher rates and would have a significant increase in home equity to weather possible storms in the near future.
Interest rates are rising to cool inflation.
Rising mortgage rates impact less than a third of households, to a maximum of a third of their income.
In contrast, inflation impacts 100% of income for 100% of the country.
What does this mean for sellers, buyers and investors, post-rate hike April 2022?
Gradual rebalancing in supply/demand
Steadier price increases
More manageable multiple offers
The more affordable homes, like condos/townhouses, will see the steepest price growth
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