Are interest hikes stopping prospective home-buyers from entering the Canadian market?
February 12, 2018 | Posted by: Carlos Tovar
Prospective homebuyers say they won’t be jumping into the Canadian housing market anytime soon if interest rates continue to rise.
According to the Canada Mortgage and Housing Corporation’s (CMHC) 2018 prospective home buyers, the majority of prospective homebuyers said they are concerned that interest rates could increase between now and the time that they make their home purchase.
In CMHC’s survey, the majority of all future homebuyers also said they’re concerned about the possibility of interest rates rising during the duration of their full amortization period.
Rate hikes aren’t the only thing that will postpone purchasing plans for prospective homebuyers.
In fact, future homebuyers said they are more worried that a spike in home prices will cause a delay in their purchasing plans. Roughly three-quarters of first-time buyers said an increase in home prices will defer their goal to buy a home, along with 73 per cent of previous owners and 63 per cent of current owners.
New mortgage rules are another hurdle that may prevent homebuyers from diving into the market anytime soon.