High housing costs and mortgage interest rates have dampened many Canadians' dreams of owning a home someday, but things are slowly changing.
Another step introduced the same day is expanded eligibility for 30-year amortization for first-time homebuyers and Canadians purchasing new builds. Last month, Canada also ended the requirement of stress tests on insured mortgaged switches."Borrowers can't exhale just yet; 2025 looks to be another wild economic ride.
"That would bring the overnight lending rate to a range between 2.5 to 2.75 per cent, and the best variable mortgage rates will, in turn, fall to the mid to upper 3 per cent range. Fixed mortgage rates, meanwhile, appear to be nearing their floor as bond investors hold firm in the face of economic uncertainty, including a potential trade war in the first half of the year," she shared in an email.
"As mortgages are considered 'anchor' products, it will be worth it for lenders to get aggressive with both their purchase and renewal rate pricing.