South Forest Hill Residences location.Canadian mortgage rates may rise to 7%. The latest lending rate forecast from Desjardins, a Canadian financial institution, shows that interest rates on five-year fixed-rate mortgages are likely to reach 7 per cent by the end of 2022.Please Visit: South Forest Hill Residences location to Get Your VVIP Registration Today!
Desjardins said higher inflation could push borrowing costs to a generation high.
According to forecasts, by the second quarter of 2022, the interest rate on five-year fixed-rate mortgages is expected to be between 5.3% and 6.3%, rising to 5.3-7.0% in the fourth quarter, 5.30-7.15% in the first quarter of 2023, and falling to 4.85-6.75% by the end of 2023.
Although the Desjardins offers a range of interest rates, they believe that interest rates are more likely to reach the upper limit.
Although the impact of higher interest rates on house prices in Vancouver is still under discussion, prices in Toronto, another Canadian metropolis, have begun to “plummet”.
The median price of urban housing in the GTA area plummeted 22% between February 1 and April 19, according to the data.
At the same time, semi-detached and freestanding houses fell by 13.5% and 12.1%, respectively. The price of the apartment fell the least, at 6.8%.
John Pasalis, president of Leslieville real estate brokerage firm Realosophy, has been tracking weekly property sales and prices, rather than the usual monthly or annual analysis.
The market has been declining since mid-March, but in the past few weeks, sales have been lower than they were before the 2019 outbreak, he said.
Not only house prices, but also in the Toronto area, new home sales have changed: new home sales have plunged 21%, of which sales of low-rise homes have plummeted by 50%.
‘If you’re not an investor or a property speculator and you buy a house to live for a few years, the current cooling doesn’t mean anything in the long run, ‘says Pasalis. But for people who buy a house in February, “it’s going to sting a little bit.”
If you bought a house in February and bought it for the first time, and the price fell by 15% or 20%, it’s hard to swallow it, even temporarily.
For example, a bungalow in Oshawa, Greater Toronto, was listed at a price of 1.075 million a few days ago and sold quickly at a price of 1.05 million. On the surface, it was only 25000 lower than the listed price of the seller, but the house was bought by the seller at a price of 1.18 million a month ago. after deducting brokerage fees and handover fees, the actual net loss of the seller is more than 200000.
According to 51 house search data, the bungalow is a newly renovated house with two separate units that can be sublet legally, with a monthly rent of 2000 yuan for the basement unit and 40% of the water and electricity bills paid by the tenants themselves, which is suitable for investment.
Transaction records show that the bungalow was sold in February 2020 at a price of 510000, and the buyer took over two years later and listed at 750000 in February 2022. As a result, the offer price was raised to 1.18 million, a premium of 57%, which means the price of the bungalow has more than doubled in two years.
But the good times did not last long, and there were signs of cooling in the real estate market in March. New buyers listed on March 10 at a price of 750000 immediately after less than a month, hoping to reproduce the beauty of offer, but the market reacted coldly and re-listed at a price of 1.075 million five days later, and finally sold quickly at a price of 1.05 million.
Experts say that house prices in Toronto are rising faster than those in Vancouver, so they are falling earlier. As for the impact of interest rate hikes on house prices, we should continue to observe.