What it means to Real Estate market and Mortgages by  Bank of Canada latest Monetary Report Policy ( MRP). 

The Bank of Canada’s rate remaining at 0.25%, mortgages will continue to be low for the next while. This is good news to the Home Buyer. If you’re looking to get a new mortgage or to refinance your current one, now is a great time to do so. Take advantage of the incredibly low interest rate, securing it for your next term. This is assuming, of course, that you’re able to pass the stress test, if it applies to your purchase.

If you currently hold a variable rate mortgage, it could be time to think about locking in at a fixed rate. The interest rates will stay low for a while. Upward rise may not happen until 2022,  and you don’t want to be caught unaware by rising interest.

When interest rates do rise, homeowners will feel the effects across the country. While cities like Toronto and Vancouver already have higher real estate prices, places like Montreal and Halifax are witnessing increasing prices as well. This, coupled with the high demand for real estate brought on by the pandemic, means that home buyers are taking out bigger loans to pay for their homes. When the mortgage rate increases, people who have more costly mortgages will have to pay more in monthly costs. In some cases, the increase in interest might make mortgage payments unendurable.

Be advised: 

The housing market remains competitive, and with the workforce returning, more individuals could be looking to purchase a home. If you are considering buying a home, take time to carefully calculate what you can afford for a down payment and how much of a mortgage you can handle. Knowing what you can safely afford when all your expenses are taken into account ensures that you only look at properties that are within your reach.

-DLC marketing team