“This is where the stress test becomes really handy because borrowers … have been tested for this type of situation, this very sudden [and] rapid spike in rates,” he said. “So the vast majority of mortgage holders should be able to withstand higher rates.”
As interest rates rise, the expectation is that home prices will decline across Canada in the coming months, Hogue said. “Let's say you went to the store and there's one item on the shelf and 10 of you wanting it, you get caught up in that frenzy of overbidding,” he said. “The cooling down reflects now the true value of a home, not an inflated value based on outside economic factors.”“Young people and immigrants have been phased out of the market in Canada because of this extraordinary, unprecedented and I believe unjustified increase [in home prices] in the last two, three years,” Lee said.
“Be very mindful, from a budget perspective, that you may be facing higher interest rates down the road,” Hogue said.
No mortgage = no problem.
Well, locked mine in at 4.99% Its only going to get higher every month!
Putin is to blame, anti vaxxers play a huge role as well.
Interest rates steal the savings of everyone by devaluing purchasing power.
'Hogue does not expect to see most Canadians defaulting on mortgage payments as rates rise. Part of the reason is the stress test that Canadian homebuyers must pass before obtaining a mortgage.' What about people who showed fake income & bribed the underwriters scotiabank cibc
The COVID-19 never showed up on constructions sites, none of developers sites were closed due 2 the COVID, yet many other retailers or business ended up with the COVID saga.Developer enjoyed 1.5 year of slow activities 4 building condos not hospitals, & Fed comp model did not see
Renting indefinitely! Carrying grocery bags forever! What a life!
The COVID aftermath: more & more rich immigrants will pour their money into this damaged economy, so the average house price will reach $2 millions in major expensive cities in North America! Gas price over $2/L POOR NEW GENERATIONS!
Summer 2020, the price gas went down 2 90s prices, yet the prices of food did not go down, helping food corporations 2 save on cost adding 2 their profit. When the price of gas goes up, prices of food go up, pushing the cost on consumers! individuals R powerless in front of corpo
As always, corporations win & consumers have 2 pay the price 4 whatever the present economy model shifts extra costs onto customers.
Change the present rigged Crapitalism economy model of this world! Reduce the global population as over exploitation of this planet’s resources has made this planet an endangered species! European turned this planet into a global trash land since their industrial revolution!
As always, food corporations such as Loblaws, Sobeys (the thieves) & Walmart benefited the most from this 'COVID-19' saga, soaring prices and taking an advanatge for racking up profit from people's pockets!
The %1 cleverly used this COVID saga by muzzling scientists who were against such extreme lock down measures around the world. No more G7 G20 protests, instead they virtually set policies 4 controlling the word better than before! Sorry social justice seekers!
Oh Canada, its pristine image replete with moose & maple, sparsely populated with large swaths of unspoiled boreal forest and tundra, has been covered by COVID-19 & its variations like ongoing techy products coming out with new names, reaching a crescendo of omnibus by-laws!
Helps the rich buy at a discount because they don’t have to borrow money.
Newsflash; THEY DONT HELP ANYONE
Houses are no longer affordable for our children’s future..I’m disgusted
Canada needs to wake up and start allowing 30 year fixed mortgages like usa.
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