The last few months have been a bumpy ride for housing prices in Canada. There are new trends developing in the housing market and the move to moving to short-term fixed rates is a wise one in terms of financial stability for consumers.
According to the Canadian Mortgage and Housing Corporation:
Mortgage growth slowed and consumers increasingly turned back to fixed-rate mortgages as interest rates rose in the second quarter of 2022, according to an analysis of trends in the Canadian mortgage market, published by the Canada Mortgage and Housing Corporation Wednesday.
The declining discount on variable rates means home buyers are looking at other ways to save on their mortgages.
As the discount dissipates, consumers tend to prefer fixed-rate mortgages. For example, in 2019, discounts on variable mortgages remained in the negative for almost the whole year, which caused the share of variable mortgages in the marketplace to slip to an average of 10.9 per cent.
For more information on fixed vs. variable rates and what it means for consumers, please contact us. We are house-buying experts and we will assist you throughout the entire process.
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