Canadian Mortgage Rates: What to Expect in the Coming Years
Fixed Rates on the Rise
Fixed rates are currently hovering in the high 4s for 5-year terms. According to the Fed rate monitor, this trend is expected to continue in the near future.
Rising House Prices and Mortgage Debt
In many markets, particularly the Greater Toronto Area (GTA), house prices have skyrocketed in recent years. This has led to a surge in mortgage debt among homeowners.
Inflation and Mortgage Rate Expectations
As Canadian inflation continues to rise, expectations for mortgage rates are also increasing. The Bank of Canada (BoC) has signaled that it will begin raising interest rates to combat inflation.
Long-Term Rate Predictions
While predicting future mortgage rates is challenging, experts suggest that the BoC rate may reach around 5% fixed in the next 2-3 years.
Advice for Homeowners
Homeowners should be aware of the potential for rising mortgage rates and consider locking in a fixed rate now if they are concerned about future increases.
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