Tuesday, August 27, 2013

Rate hikes to cool Canadian Real Estate Market

As posted before, cities like Toronto, Calgary and Vancouver are experience summer booms.  The major banks in Canada have made a move to attempt to control these markets by raising their lending rates - please click here for the full article

On Tuesday, BMO announced that it will raise the interest rate on the five-year, fixed mortgage even higher to 3.79 per cent from 3.59 per cent, in a move that the Wall Street Journal says could “spur a chill in Canada’s still-hot housing market.”

Will this change buyers and investors mind sets about purchasing?  Time will tell.  Usually, these rate changes have minimal effect (unless the change is drastic), but it might keep some first time buyers on the side line, which means more people renting.

1 comment:

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