Cielo condos urbantoronto. The Bank of Canada lowered the eligibility for home loans. Cut the interest rate to 4.79% for the third time.Please Visit: Cielo condos urbantoronto to Get Your VVIP Registration Today!
Five-year interest rates have been cut twice since the start of the Canadian epidemic, the first from 5.19% to 5.04% in mid-March, a drop of 15 points, and another 10 points to 4.94% in May. Recently, Canada has made a third adjustment, and interest rates have been cut by another 15 points. The Bank of Canada has cut its benchmark interest rate for five-year mortgages to 4.79 per cent from the current 4.94 per cent, as the five-year mortgage rate for most of the country’s commercial banks has fallen to 4.79 per cent. The central bank generally sets the benchmark based on the most common interest rates of Canada’s six largest banks. Falling interest rates are driving up demand for housing, which is good news for people who recently want to borrow money to buy a house. Borrowers can now borrow more money while their income remains unchanged.
The number of new housing starts also rebounded fully in Canada, with an increase of 16%. The annual seasonally adjusted housing starts rose from 212095 in June to 245604 in July, according to figures released today by the Canadian Mortgage and Housing Corporation (CMHC). The growth was driven by an 18.8 per cent increase in urban starts of apartments and other types of multi-unit housing projects to 184431 units in July, while construction of urban detached houses rose 12.3 per cent to 47564 units.
From the above data analysis, we can see that although Canadian house prices are on the rise, the Canadian government has been doing benign control over the real estate market. The introduction of loan stress tests in 2018 has had a huge crackdown on the Canadian real estate market, especially in Vancouver and Toronto, two areas where the housing market was overheated at that time, causing the housing market in both regions to cool rapidly. The purpose of the stress tests was to cool the overheated housing market at the time and to ensure that borrowers would be able to repay their loans if interest rates suddenly rose. If the borrower wants a loan but fails the stress test, the lender (the bank) is not allowed to lend to them.