© Reuters. FILE PHOTO: A house with a sold real estate sign on it in a neighbourhood of Ottawa, Ontario, Canada April 17, 2023. REUTERS/Lars Hagberg/File Photo
In some cases, renewed home loan rates could reach 7%, which would push up the average Canadian mortgage by at least a few hundred dollars per month, mortgage brokers estimate. "We're having a lot of phone calls about people with concern... what they should be doing to brace themselves for the maturity date, or the renewal of their mortgage," said Daniel Vyner, a broker at Toronto-based boutique mortgage firm DV Capital.
"This dramatic rise in bond yields means that when the computer chugs along and sets up the rates for next week, they will be using higher rates based on these high bond yields," Toronto-based mortgage broker Ron Butler said.Variable home loans, which accounted for roughly half of Canada's outstanding mortgages from July 2021 to June 2022, were already rising in tandem with the Bank of Canada's record pace of interest rate hikes. The country's mortgage debt stands at C$2.
And the mortgage pain could grow if the Bank of Canada raises its benchmark interest rate one more time over the coming months as money markets expect, from the current 5%, and likely to stay higher for longer, analysts say.
Property Property Latest News, Property Property Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Reuters - 🏆 2. / 97 Read more »
Source: nbcchicago - 🏆 545. / 51 Read more »