Mortgage rates set to rise next month

It seems all but certain that Canadian mortgage rates will be going up next month. With the Bank of Canada prime rate anticipated to increase in June, lending rates at banks are sure to follow.

According to the Globe and Mail, “Almost half a million more mortgage holders would be in trouble if their rates hit 5.25 per cent, a national survey showed” last week.

“The report was compiled from an online survey of 3,000 Canadians, almost 1,800 of whom were home owners with mortgages. The survey was conducted by public-opinion firm Maritz for CAAMP, during April.

Among mortgages created during the past year, two-thirds are in a fixed rate, 29 per cent are variable or adjustable, and 6 per cent are combination mortgages.”

Get the full story at theglobeandmail.com

A recent Financial Post story stated that;

“Canadians listed their homes for sale in record numbers in April as countrywide housing inventory hit levels not seen in almost a year, says the Canadian Real Estate Association.

While the market has not slumped, just about everybody tracking the sector — from economists and builders to real estate executives — say there is nowhere else to go but down in prices and sales.”