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

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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.

 

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