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Recently, the Bank of Canada warned that mortgage repayments could increase by another 30%.
In this case, the median monthly cost of 1.4 million Canadians who get mortgages in 2020 or 2021 will rise by C $420, or 30 per cent.
The impact on fixed-rate borrowers will be slightly smaller because their repayments will increase by 24% from an average of C $1260 a month to C $1560 a month.
This means that the cost of Canadian home buyers is further increasing, and there is a lot of room for house prices to fall in the future.
The latest figures show that Canadian house prices fell 6% in may and are now averaging C $746000, with rapidly rising mortgage rates throwing cold water on the red-hot real estate market.
Home sales across the country fell 12%, with big cities such as Toronto falling the most, the Canadian Real Estate Association said on Monday.
Canadian house prices hit an all-time high of more than C $816000 in February and the average house price has fallen for the second month in a row. In March, the average price was C $796000, then fell another 6% in April, usually the strongest month for the property market.
