Published on 11/09/2021 3:37 PM
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A one percentage point increase in mortgage rates from current levels will cost new buyers an average of $ 230 more, in additional monthly interest payments. (Photo: The Canadian Press)
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Toronto – Many Canadians are trying to get mortgage pre-approvals and lock in some interest rates, as economists predict the long period of pandemic low interest rates will soon end.
Estée Zacks says she has recently noticed an increase in requests to freeze rates, which freeze mortgage rates for a few months.
The owner of Strategic Mortgage Solutions says her clients see lockdowns as a way to get a head start in hot markets like Toronto, which favor sellers.
Analyst Benjamin Tal, of CIBC Capital Markets, notes that even a one percentage point increase in mortgage rates from current levels will cost new buyers an average of $ 230, or 12% more, in mortgage payments. additional monthly interest.
BMO Capital Markets economist Robert Kavcic says five-year fixed mortgage rates are already on the rise, but people with pre-approvals on hand probably still had a month or two to buy a mortgage. property.
He believes the Bank of Canada will likely raise its key interest rate faster, and more significantly, than most people expect, weighing down on buyers.
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