Canadian Mortgage Market Navigating Uncertainties and Shifting Trends

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In February, Canadian mortgage debt saw its slowest growth in 23 years, rising only 3.4 percent compared to the previous year. Factors contributing to this include high borrowing costs and uncertainties surrounding the Bank of Canada's interest rate policies. These conditions led to a decrease in home sales and softer prices across many regions, reflecting a cautious stance from prospective homebuyers. Tu Nguyen, an economist with RSM Canada, attributes this slowdown to the pressure on households from high inflation and interest rates. She anticipates a resurgence in mortgage growth once the Bank of Canada starts to cut rates, potentially as early as next week according to the upcoming interest rate announcement on June 5.

Read the full article on: CBC