The recent report by RatesDotCA — an online marketplace for mortgages — examined queries for mortgage quotes for all property types in October finding those from would-be investors fell by 60 per cent from September.Sign up to receive daily headline news from the Calgary Herald, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.
The study also revealed that the biggest decline among queries for mortgages was among borrowers seeking to purchase vacation properties, falling by 64 per cent. Meanwhile, requests for mortgage quotes for primary residences dropped by 59 per cent in October from September. Overall, the number of people requesting new purchase mortgages fell 60 per cent while refinancing and renewals declined by only 51 per cent month over month.Article content
The report further noted that declines for all inquiries for mortgages likely dropped last month as a result of the sixth Bank of Canada overnight rate hike — 50 basis points — that took place in early October. The RatesDotCA report also revealed that quotes for fixed mortgages in October slightly outpaced those for variable rates for the first time since March. One reason for the rise in interest, it suggested, was an uptick in quotes for short-term, fixed mortgages. It further added that some borrowers may be gravitating to these short-term mortgages, seeking to ride out near-term interest rate volatility and then renew at a later date for a five-year term at a lower interest rate.
Good.