Inflation, affordability, and rates continue to be hot topics in Canada. With inflation hitting 7.7%, the highest since 1983, the Bank of Canada is expected to announce an oversized rate hike of 75 basis points next week on July 13^th in an attempt to control inflation.   

With rates on the rise recently, home prices continue to decline to more normal levels after the record highs we’ve seen due to very low rates in the last two years. With home prices going down, more Canadians who may have been previously priced out of the market, are now looking at potentially buying a home. Investors or homeowners who may have built equity in their home during the pandemic, are seeing an opportunity to invest in real estate now that prices have gone down and bidding wars are less likely.

A poll conducted on behalf of TD Bank recently found that 1 in 4 Canadians indicated that they are likely to buy a home or investment property in the next year. However rising rates do affect affordability as the stress test is also now higher. The stress test is used to qualify borrowers and the maximum amount they can borrow. Mortgage Alliance professionals have access to multiple lenders including non-traditional lenders like credit unions and private lenders that offer alternative qualifying methods.

If you’re looking at potentially buying or investing in real estate, a Mortgage Alliance professional can show you your mortgage options and lock in a rate for you. Click here to find a broker in your area.