Are higher mortgage rates going to wreck half of #Canadian households? Can we expect home foreclosures to trend in 2022?

๐—ก๐—ผ,ย ๐—–๐—ฎ๐—ป๐—ฎ๐—ฑ๐—ถ๐—ฎ๐—ป๐˜€ย ๐—ฎ๐—ฟ๐—ฒย ๐—ป๐—ผ๐˜ย ๐—ฎ๐˜ย ๐—ฟ๐—ถ๐˜€๐—ธ.

70% of Canadians donโ€™t 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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