M2m condos price. Will house prices plummet? As a result of the epidemic, the Bank of Canada’s benchmark interest rate plunged from 1.75% at the beginning of the year to 0.25% today, pushing Canadian lending rates through an all-time low, and the cost of buying a house in Canada is now at an all-time low.Please Visit: M2m condos price to Get Your VVIP Registration Today!
In fact, the lending rates of the major banks did not fall as sharply as those of the central bank, and immediately after the central bank cut interest rates for the first time, the major banks lowered their lending rates.
But after the central bank cut interest rates for the second and third time, banks quietly raised lending rates as funds dried up and they had to prepare for widespread unemployment across the country to prevent a large number of loan defaults.
But bank interest rates have fallen again as the epidemic has improved and the economy has restarted, according to loan data website RateHub.
This wave of decline has directly reduced the interest rates of major banks to an all-time low. According to the data, the bank with the lowest lending rate in Canada is HSBC, with a five-year fixed lending rate of 1.99%.
According to RateSpy, another loan data tracking website, HSBC’s exchange rate is the lowest five-year fixed rate ever recorded in Canada, and it is the first time that the five-year fixed rate has fallen below 2 per cent.
With interest rates at record lows and the lifting of seals in major cities, some experts estimate that the housing market may pick up in June, and from a home sales point of view, this month will be much better than in the past two months.
Unfortunately, for buyers, despite the benefits of low interest rates, it is more difficult to buy a house now, as Canadian home loan company CMHC suddenly announced a new policy to tighten home loan insurance standards and improve the credit score of lenders.
The policy will take effect from July 1st, simply because of the high and rising household debt levels and the risk of financial instability in Canada, where 1/8 of mortgages are deferred, and that proportion is likely to rise to 1/5 recently, says Evan Siddall, head of CMHC.
By this fall, those who have previously applied for deferred repayments will repay their loans with interest, and lenders are now worried about how many people will be able to start repaying their loans again.
Apart from whether everyone can still pay for the loan, what is more worrying is the house price. In a forecast released in May, CMHC predicted that average house prices would fall by 9 to 18 per cent this year, which caused some dissatisfaction at the time, and many in the industry thought it was too pessimistic.
But recently, more people have begun to agree with CMHC’s pessimistic view, and economists at the National Bank of Canada also predict that “Canadian house prices will fall sharply next year.”
Economists at the national bank used another method of forecasting that house prices would fall by 9.8% between 2020 and 2021, even if lending rates were low.