The Bank of Canada’s decision to hold interest rates at elevated levels could push over-leveraged homeowners into the rental market – driving prices higher in turn, experts say. , holding borrowing costs and mortgage rates at high levels after its steep hiking cycle began early last year.
Pasalis explained that in this environment, it is not uncommon to see landlords downscale their homes in an effort to clear some debt, or offload investment properties,“While we are seeing more inventory come online and pricing cooling just a bit, I think the pressures in the rental market will persist so long as rates remain high,” Pasalis cautioned A hold on rates will bring relief for some landlords, but every month there’s an investment property owner who simply can’t afford to keep up with...