The year 2025 promises to be difficult for many households, according to a mortgage broker, since 1.2 million fixed-rate mortgages will be renewed in Canada.
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In an interview with LCN, mortgage broker Stéphane Bruyère maintained that the pressure will be felt quickly for many clients.
“Budget-wise it will show up,” he said. At least the good news is that over the last two or three months we have seen reductions in interest rates. So we’re seeing mortgage rates fall.
This means that “more and more people are opting for [un taux variable] hoping that the rates will be 3.5 to 4%,” according to him.
Mr. Bruyère recalled that several families purchased a property that exceeded their purchasing capacity.
He noted that some customers find themselves “stuck.” High prices on the rental market also make it difficult for an owner who would no longer be able to repay their mortgage.
“A lot of people can’t buy back their homes,” he said. It’s quite a dilemma. I think people will reduce their travel, their restaurants and their shopping.
Watch the full interview in the video above
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