In a new report released earlier this week, BMO noted that the prospect of rising interest rates does not appear to be discouraging Canadians sufficiently from buying homes. 23% are still planning to purchase their primary residences in the next year, for an average expected price of $474,000, with the largest markets averaging $580,000 (Toronto) and $603,000 (Vancouver).
“For the first time in years, interest rates are beginning to rise – making it increasingly important for Canadians looking to buy a home to stress-test their mortgage against a higher rate to ensure they can afford it over the long term,” BMO head of personal banking Martin Nel said.
“Even moderate increases in interest rates, like the two additional quarter-point rate hikes that we expect from the Bank of Canada this year, can erode affordability in high-priced regions,” BMO Capital Markets senior economist Sal Guatieri added. “Given that rates have been historically low for a while and are not expected to increase dramatically, borrowers may not see the need to stress test. But they should at least plan for a worse-case scenario that involves a material increase in borrowing costs.”
Meaning the time is now to buy your home in Prince George, while interest rates are reasonable. Homes in our area stay on the market for on average a week or less. This creates a seller’s market and you need an agent that can get you top dollar for your home. Call Denise 250.981.4208. You need an agent that is going to work hard for you! To get you into that new home.
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