MORTGAGE RATES HAVE FALLEN FOR THE THIRD TIME THIS YEAR
The mortgage rate has been cut by the Bank of Canada to 4.79 percent. A further decrease from where the rate fell in March of 2020 at 5.04 percent. These lower rates can be seen as a win for some. Mainly, for those who might have barely qualified for a mortgage before, they might be able to qualify for what they need now.
However, others may see a different side of the story. The head of Canada Mortgage and Housing Corp (CMHC) has released a statement requesting the nation's lenders to reconsider offering a lower mortgage rate. The CEO of CMHC, Evan Siddall, believes that "excessive borrowing will worsen the pain of the coming economic adjustments."
Siddall believes that the mixture of factors that are fueling the Canadian real estate market, including low mortgage rates and low supply of new listings, coupled with the effects of COVID-19 emergency response measures and high unemployment rates will result in house prices to begin to fall in late 2020.