Bank of Canada interest rate hike adds pressure to tight rental market

  • 📰 nationalpost
  • ⏱ Reading Time:
  • 55 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 80%

Business News News

Business Business Latest News,Business Business Headlines

Prices for rentals \u0027getting out of control\u0027 even as housing market

Besides cooling red-hot inflation, the additional rate hike will have a further impact on the housing market. Higher

“For me, personally, I think landlords are getting out of control with the prices they’re asking,” says Michael Sistilli, business development and mortgage agent at UNION Capital Lending. “I’ve never seen a lease be the same amount as a mortgage payment,” he added. “They’re trying to break even. But unfortunately, in this market, it’s very hard to break even, especially for condos, when factoring costs such as maintenance fees.”Article content

“You’re gonna know right off the bat, whether or not you can afford that,” Sistilli said. “So another interest rate hike is not going to change the fact that you couldn’t afford it anyways.”Article contentFor Geordie Dent, executive director of the Federation of Metro Tenants’ Associations, renters in Toronto are experiencing the “perfect storm of bad conditions.”“We’ve had very low amounts of supply built in terms of rental housing for almost 30 years.

Daniel Foch, a broker at the Foch Family Real Estate, believes that the strong rental market is an option for landlords and investors who are considering selling.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 10. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Oil prices stable below $100 a barrel as market balances Chinese dataBrent crude futures rose by 6 cents to $98.63 a barrel at 1026 GMT, while U.S. West Texas Intermediate crude was down 1 cent at $92.60
Source: globeandmail - 🏆 5. / 92 Read more »