Canadians bid farewell to lower interest rates in March 2022, when the Bank of Canada increased overnight rates for the first time in more than two years. It didn’t take long forto rise accordingly. According to Statistics Canada, the average conventional mortgage lending rate for loans with five-year terms was 3.28 per cent in 2021, but now it supasses five per cent.
“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.
This combination of factors has made real estate investors hold on to their assets and opt to rent to stop their losses.Sellers have equity and not liquidity “Sellers at the moment have equity, but not liquidity,” says Foch, who also co-hosts “The Canadian Real Estate Investor” podcast.This advertisement has not loaded yet, but your article continues below.“Most sellers aren’t worried at the moment, but the rental market is strong, so we are seeing an increase in rental listings, as sellers who can afford to are capitalizing on the rental income, rather than liquidating the asset.