03/24/2022
How has the hike in interest rate effected the housing market you may wonder…
Major financial institutions are already taking note of the central bank’s decision to hike interest rates to 0.5%, an increase of 25 basis points from the rock-bottom lows seen through much of the pandemic.
RBC and TD Bank moved to hike their prime lending rates to 2.7% from 2.45 percent effective March 3 in response to the Bank of Canada’s announcement. Other Canadian banks expected to follow suit.
The average $500,000 mortgage holder will pay an extra $58 per month as a result of the hike, according to experts
If the prospect of additional rate hikes is making paying down the mortgage increasingly worrying, homeowners can look at pivoting to a fixed rate for more security.
The listings price found after those rate hikes there were “very small movements” in the average price, which could be attributed back to seasonality and the new mortgage stress test rather than the rate increase.
Karanvir Sangha Real Estate
📱647-628-8372
📧[email protected]
💻www.karanvirsangha.ca
